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.
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CSEF Working Papers
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NBER Working Papers
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- 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.
- 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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