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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- Luigi Guiso & Tullio Jappelli, 1999.
"Private Transfers, Borrowing Constraints and the Timing of Homeownership,"
CSEF Working Papers
17, Centre for Studies in Economics and Finance (CSEF), University of Naples, Italy.
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- Guiso, Luigi & Jappelli, Tullio, 1998. "Private Transfers, Borrowing Constraints and the Timing of Homeownership," CEPR Discussion Papers 2050, C.E.P.R. Discussion Papers.
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Annales d'Economie et de Statistique,
ENSAE, issue 9, pages 71-91.
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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.
- Mervyn A. King, 1980. "An econometric model of tenure choice and demand for housing as a joint decision," NBER Chapters, in: Econometric Studies in Public Finance, pages 137-159 National Bureau of Economic Research, Inc.
- Dougherty, Ann & Van Order, Robert, 1982. "Inflation, Housing Costs, and the Consumer Price Index," American Economic Review, American Economic Association, vol. 72(1), pages 154-64, March.
- King, Mervyn A., 1980. "An econometric model of tenure choice and demand for housing as a joint decision," Journal of Public Economics, Elsevier, vol. 14(2), pages 137-159, October.
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