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Regional Shocks, Migration and Homeownership

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  • Florian Oswald

    (UCL - University College London [UCL])

Abstract

This paper estimates a lifecycle model of consumption, housing choice and migration in the presence of aggregate and regional shocks, using the Survey of Income and Program Participation (SIPP). Using the model I estimate the value of the migration option and the welfare impact of policies that may restrict mobility. The option to move is equivalent to 4.4% of lifetime consumption. I also find that, were the mortgage interest-rate deduction to be eliminated, the aggregate migration rate would increase only marginally by 0.1%. Following a general equilibrium correction, house prices are reduced by 5%, which results in a 1% increase in home ownership. In a new steady state the elimination of the deduction is equivalent to an increase of 2.4% of lifecycle consumption.

Suggested Citation

  • Florian Oswald, 2015. "Regional Shocks, Migration and Homeownership," Working Papers hal-03459804, HAL.
    • Handle: RePEc:hal:wpaper:hal-03459804
    Note: View the original document on HAL open archive server: https://sciencespo.hal.science/hal-03459804v1
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    File URL: https://sciencespo.hal.science/hal-03459804v1/document
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    References listed on IDEAS

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    Cited by:

    1. Parkhomenko, Andrii, 2016. "Opportunity to Move: Macroeconomic Effects of Relocation Subsidies," MPRA Paper 75256, University Library of Munich, Germany.

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