Arbeitspapier
Housing habits and their implications for life-cycle consumption and investment
We solve a rich life-cycle model of household decisions involving consumption of perishable goods and housing services, habit formation for housing consumption, stochastic labor income, stochastic house prices, home renting and owning, stock investments, and portfolio constraints. In line with empirical observations, the optimal decisions involve (i) stock investments that are low or zero for many young agents and then gradually increasing over life, (ii) an age- and wealth-dependent housing expenditure share, (iii) non-housing consumption being significantly more sensitive to wealth and income shocks than housing consumption, and (iv) non-housing consumption being humpshaped over life.
- Sprache
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Englisch
- Erschienen in
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Series: SAFE Working Paper ; No. 85
- Klassifikation
-
Wirtschaft
General Financial Markets: General (includes Measurement and Data)
Household Saving; Personal Finance
Micro-Based Behavioral Economics: Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making‡
Macroeconomics: Consumption; Saving; Wealth
Urban, Rural, Regional, Real Estate, and Transportation Economics: Housing Demand
- Thema
-
Habit formation
life-cycle household decisions
housing expenditureshare
consumption hump
stock market participation
human capital
- Ereignis
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Geistige Schöpfung
- (wer)
-
Kraft, Holger
Munk, Claus
Wagner, Sebastian
- Ereignis
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Veröffentlichung
- (wer)
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Goethe University Frankfurt, SAFE - Sustainable Architecture for Finance in Europe
- (wo)
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Frankfurt a. M.
- (wann)
-
2015
- DOI
-
doi:10.2139/ssrn.2568518
- Handle
- Letzte Aktualisierung
-
10.03.2025, 11:42 MEZ
Datenpartner
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.
Objekttyp
- Arbeitspapier
Beteiligte
- Kraft, Holger
- Munk, Claus
- Wagner, Sebastian
- Goethe University Frankfurt, SAFE - Sustainable Architecture for Finance in Europe
Entstanden
- 2015