IDEAS home Printed from https://ideas.repec.org/p/del/abcdef/97-25.html
   My bibliography  Save this paper

Housing in French Households Portfolio

Author

Listed:
  • Arrondel, A.
  • Lefebvre, B.

Abstract

The dual motives of housing behaviour, consumption and investment, make the analysis of housing purchases quite difficult. Nevertheless, it is better to refer to a model that keeps the two-dimensional aspects of housing. In the absence of institutional considerations, this model predicts that it is the difference between the housing investment demand and the housing consumption demsnd that explains decisions to purchase dwellings for owner occupation and for letting out. We have tested the model on the french data of the survey "Actifs Financiers 1992". Results show that the difference between the two demands cannot in itself explain housing purchases. Transaction costs, the tax system, the public aid policies for home ownership, and other market imperfections are inadequately dealt with. Moreover, estimation and identification of housing demand functions, both for consumption and investment, tend to show that there are portfolio motives in the factors that determine housing demand for owner occupation. To go further in our analysis of housing behaviours, and due to the fact that portfolio motives are present when a household buys its main residence, we have tested a portfolio choice model where the different dwellings are defined as assets. The empirical test of this model shows the specificities of real estate in the household wealth. Nonetheless, even though we found some independence between investment in principal residence and in financial assets, it seems difficult to separate the decision of owning of main residence and owning of housing for letting out.

Suggested Citation

  • Arrondel, A. & Lefebvre, B., 1997. "Housing in French Households Portfolio," DELTA Working Papers 97-25, DELTA (Ecole normale supérieure).
  • Handle: RePEc:del:abcdef:97-25
    as

    Download full text from publisher

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a search for a similarly titled item that would be available.

    More about this item

    Keywords

    HOUSEHOLD ; CONSUMPTION;

    JEL classification:

    • E20 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - General (includes Measurement and Data)

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:del:abcdef:97-25. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (). General contact details of provider: http://edirc.repec.org/data/deltafr.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.