Tenure Choice, Portfolio Structure and Long-Term Care - Optimal Risk Management in Retirement

Arbeitspapier

We study the interplay between tenure decisions, stock market investment and the public social security system. Housing equity not only serves a dual purpose as a consumption good and as an asset, but also provides insurance to buffer various risks in retirement. Our life cycle model captures these links in order to explain why homeownership in Germany is so low. Our simulation results indicate that the public long-term care as well as the pension system reduce the homeownership rate in Germany by 10-15 percentage points.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: CESifo Working Paper ; No. 7783

Classification and Topics

• Classification: Wirtschaft ; Optimization Techniques; Programming Models; Dynamic Analysis ; Intertemporal Household Choice; Life Cycle Models and Saving ; Portfolio Choice; Investment Decisions ; Social Security and Public Pensions
• Subject: homeownership ; stock market participation ; life-cycle models ; long-term care

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Fehr, Hans ; Hofmann, Maurice
• Event: Veröffentlichung
• (who): Center for Economic Studies and ifo Institute (CESifo)
• (where): Munich
• (when): 2019

Further information

• Handle: http://hdl.handle.net/10419/202009
• Last update: 10.03.2025, 11:42 AM CET