Homeownership and the Life Cycle: an Ordered Logit Approach
This paper presents an ordered logit approach to model the optimal timing of buying a house in 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.
|Date of creation:||Mar 2003|
|Contact details of provider:|| Web page: http://feb.kuleuven.be/Economics/|
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- Guiso, Luigi & Jappelli, Tullio, 2002.
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Journal of Money, Credit and Banking,
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- Donald R. Haurin & Patric H. Hendershott & Susan M. Wachter, 1996. "Borrowing Constraints and the Tenure Choice of Young Households," NBER Working Papers 5630, National Bureau of Economic Research, Inc.
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