IDEAS home Printed from https://ideas.repec.org/p/ran/wpaper/787.html
   My bibliography  Save this paper

Housing Mobility and Downsizing at Older Ages in Britain and the United States

Author

Listed:
  • James Banks
  • Richard Blundell
  • Zoe Oldfield
  • James P. Smith

Abstract

This paper examines geographic mobility and housing downsizing at older ages in Britain and America. Americans downsize housing much more than the British largely because Americans are much more mobile. The principal reasons for greater mobility among older Americans are two fold: (1) greater spatial distribution of geographic distribution of amenities (such as warm weather) and housing costs and (2) greater institutional rigidities in subsidized British rental housing providing stronger incentives for British renters not to move. This relatively flat British housing consumption with age may have significant implications for the form and amount of consumption smoothing at older ages.

Suggested Citation

  • 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.
  • Handle: RePEc:ran:wpaper:787
    as

    Download full text from publisher

    File URL: https://www.rand.org/content/dam/rand/pubs/working_papers/2010/RAND_WR787.pdf
    Download Restriction: no

    Other versions of this item:

    References listed on IDEAS

    as
    1. Todd Sinai & Nicholas S. Souleles, 2005. "Owner-Occupied Housing as a Hedge Against Rent Risk," The Quarterly Journal of Economics, Oxford University Press, pages 763-789.
    2. John Y. Campbell & Christopher Polk & Tuomo Vuolteenaho, 2010. "Growth or Glamour? Fundamentals and Systematic Risk in Stock Returns," Review of Financial Studies, Society for Financial Studies, pages 305-344.
    3. Joao F. Cocco, 2005. "Portfolio Choice in the Presence of Housing," Review of Financial Studies, Society for Financial Studies, pages 535-567.
    4. François Ortalo-Magné & Sven Rady, 2006. "Housing Market Dynamics: On the Contribution of Income Shocks and Credit Constraints ," Review of Economic Studies, Oxford University Press, vol. 73(2), pages 459-485.
    5. Steven F. Venti & David A. Wise, 2004. "Aging and Housing Equity: Another Look," NBER Chapters,in: Perspectives on the Economics of Aging, pages 127-180 National Bureau of Economic Research, Inc.
    6. Campbell, John Y. & Cocco, Joao F., 2007. "How do house prices affect consumption? Evidence from micro data," Journal of Monetary Economics, Elsevier, pages 591-621.
    7. Louise Sheiner & David N. Weil, 1992. "The Housing Wealth of the Aged," NBER Working Papers 4115, National Bureau of Economic Research, Inc.
    8. Martin Browning & Annamaria Lusardi, 1996. "Household Saving: Micro Theories and Micro Facts," Journal of Economic Literature, American Economic Association, pages 1797-1855.
    9. Kul B. Bhatia, 1987. "Real Estate Assets and Consumer Spending," The Quarterly Journal of Economics, Oxford University Press, pages 437-444.
    10. Brueckner, Jan K, 1997. "Consumption and Investment Motives and the Portfolio Choices of Homeowners," The Journal of Real Estate Finance and Economics, Springer, pages 159-180.
    11. Chen, Yu-Fu & Funke, Michael, 2002. "Exchange rate uncertainty and labour market adjustment under fixed and flexible exchange rates," HWWA Discussion Papers 196, Hamburg Institute of International Economics (HWWA).
    12. Edward L. Glaeser & Giacomo A. M. Ponzetto & Jesse M. Shapiro, 2005. "Strategic Extremism: Why Republicans and Democrats Divide on Religious Values," The Quarterly Journal of Economics, Oxford University Press, pages 1283-1330.
    13. Merlo, Antonio & Ortalo-Magne, Francois, 2004. "Bargaining over residential real estate: evidence from England," Journal of Urban Economics, Elsevier, pages 192-216.
    14. Engelhardt, Gary V., 1996. "House prices and home owner saving behavior," Regional Science and Urban Economics, Elsevier, pages 313-336.
    15. Campbell, John Y. & Cocco, Joao F., 2007. "How do house prices affect consumption? Evidence from micro data," Journal of Monetary Economics, Elsevier, pages 591-621.
    16. Ermisch, John & Pevalin, David J., 2004. "Early childbearing and housing choices," Journal of Housing Economics, Elsevier, pages 170-194.
    17. James Banks & Richard Blundell & Zöe Oldfield & James P. Smith, 2012. "Housing Mobility and Downsizing at Older Ages in Britain and the USA," Economica, London School of Economics and Political Science, pages 1-26.
    18. Marjorie Flavin & Takashi Yamashita, 2002. "Owner-Occupied Housing and the Composition of the Household Portfolio," American Economic Review, American Economic Association, pages 345-362.
    19. Merlo, Antonio & Ortalo-Magne, Francois, 2004. "Bargaining over residential real estate: evidence from England," Journal of Urban Economics, Elsevier, pages 192-216.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Viola Angelini & Agar Brugiavini & Guglielmo Weber, 2014. "The dynamics of homeownership among the 50+ in Europe," Journal of Population Economics, Springer;European Society for Population Economics, pages 797-823.
    2. Viola Angelini & Agar Brugiavini & Guglielmo Weber, 2014. "The dynamics of homeownership among the 50+ in Europe," Journal of Population Economics, Springer;European Society for Population Economics, pages 797-823.
    3. James Banks & Elaine Kelly & James P. Smith, 2013. "Spousal Health Effects: The Role of Selection," NBER Chapters,in: Discoveries in the Economics of Aging, pages 255-279 National Bureau of Economic Research, Inc.
    4. Alessandro Bucciol & Raffaele Miniaci, 2011. "Household Portfolios and Risk Bearing over Age and Time," Working Papers 15/2011, University of Verona, Department of Economics.

    More about this item

    JEL classification:

    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • D91 - Microeconomics - - Micro-Based Behavioral Economics - - - Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making

    NEP fields

    This paper has been announced in the following NEP Reports:

    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:ran:wpaper:787. 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: (Benson Wong). General contact details of provider: http://edirc.repec.org/data/lpranus.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 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.