This paper presents an ordered logit approach to model the optimal timing of buying a house during the life cycle. The model is applied to three recent Belgian household budget surveys. We find that households postpone homeownership or choose to be lifelong tenant due to an increase of the transaction tax rate, the real interest rate on mortgages and an indicator for the evolution of real house prices. Expenditures on nondurables, on the contrary, have a positive impact on (early) homeownership.
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Paper provided by Katholieke Universiteit Leuven, Centrum voor Economische Studiën, Working Group Public Economics in its series Public Economics Working Paper Series with number
wplclog.
Length: 12 pp. Date of creation: 2003 Date of revision: Publication status: Forthcoming in revised form in Applied Economics Quarterly, Vol. 51, issue 4 (2005). Handle: RePEc:wpe:papers:wplclog
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