Housing Mobility and Downsizing at Older Ages in Britain and the United States
AbstractThis paper investigates the effects of housing price risk on housing choices over the life-cycle. Housing price risk can be substantial but, unlike other risky assets which people can avoid, the fact that most people will eventually own their home creates an insurance demand for housing assets early in life. Our contribution is to focus on the importance of home ownership and housing wealth as a hedge against future house price risk for individuals moving up the ladder – people living in places with higher housing price risk should own their first home at a younger age, should live in larger homes, and should be less likely to refinance. These predictions are tested and shown to hold using panel data from the United States and Great Britain.
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Bibliographic InfoPaper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 5168.
Length: 43 pages
Date of creation: Sep 2010
Date of revision:
Publication status: published in: Economica, 2011, [Early View]
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Other versions of this item:
- James Banks & Richard Blundell & Zoe Oldfield & James P. Smith, 2010. "Housing Mobility and Downsizing at Older Ages in Britain and the United States," Working Papers 787, RAND Corporation Publications Department.
- D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
- D91 - Microeconomics - - Intertemporal Choice - - - Intertemporal Household Choice; Life Cycle Models and Saving
This paper has been announced in the following NEP Reports:
- NEP-AGE-2010-09-18 (Economics of Ageing)
- NEP-ALL-2010-09-18 (All new papers)
- NEP-MIG-2010-09-18 (Economics of Human Migration)
- NEP-URE-2010-09-18 (Urban & Real Estate Economics)
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- James Banks & Elaine Kelly & James P. Smith, 2013.
"Spousal Health Effects: the Role of Selection,"
in: Discoveries in the Economics of Aging
National Bureau of Economic Research, Inc.
- Alessandro Bucciol & Raffaele Miniaci, 2011. "Household Portfolios and Risk Bearing over Age and Time," Working Papers 15/2011, University of Verona, Department of Economics.
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