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 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.
|Date of creation:||2003|
|Date of revision:|
|Publication status:||Forthcoming in revised form in Applied Economics Quarterly, Vol. 51, issue 4 (2005).|
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Web page: http://www.econ.kuleuven.ac.be/ew/academic/econover/default.htm
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- Avner BAR-ILAN & Alan S. BLINDER, 1988. "The Life Cycle Permanent-Income Model and Consumer Durables," Annals of Economics and Statistics, GENES, issue 9, pages 71-91.
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CSEF Working Papers
17, Centre for Studies in Economics and Finance (CSEF), University of Naples, Italy.
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- Goodman, Allen C., 1995. "A Dynamic Equilibrium Model of Housing Demand and Mobility with Transactions Costs," Journal of Housing Economics, Elsevier, vol. 4(4), pages 307-327, December.
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