Saving up or settling down: Home ownership over the life cycle

abstract

• In a Bewley model with endogenous price volatility, home ownership and mobility across locations and jobs, we assess the contribution of financial constraints, housing illiquidities and house price risk to home ownership over the life cycle. The model can explain the rise in home ownership and fall in mobility over the life cycle. While some households rent due to borrowing constraints in the mortgage market, factors that affect propensities to save and move, such as risky house values and transactions costs, are equally important determinants of the ownership rate. (Copyright: Elsevier)

authors

• Halket, Jonathan

published proceedings

• REVIEW OF ECONOMIC DYNAMICS

altmetric score

• 0.25

author list (cited authors)

• Halket, J., & Vasudev, S.

citation count

• 28

complete list of authors

• Halket, Jonathan||Vasudev, Santhanagopalan

publication date

• January 2014

publisher

• Elsevier  Publisher

published in

• Review of Economic Dynamics  Journal

keywords

• Financial Constraints
• Home Ownership
• Illiquid Assets
• Incomplete Markets

Digital Object Identifier (DOI)

• 10.1016/j.red.2013.06.002

start page

• 345

end page

• 366

volume

• 17

issue

• 2

URL

• http://dx.doi.org/10.1016/j.red.2013.06.002