Housing Habits and Their Implications for Life-Cycle Consumption and Investment
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Datum
2017-01-26
Autor
Kraft, Holger
Munk, Claus
Wagner, Sebastian
SAFE No.
85
Metadata
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Zusammenfassung
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 hump-shaped over life.
Forschungsbereich
Household Finance
Schlagworte
habit formation, life-cycle household decisions, housing expenditureshare, consumption hump, stock market participation, human capital
JEL-Klassifizierung
G10, D14, D91, E21, R21
Thema
Consumption
Household Finance
Monetary Policy
Household Finance
Monetary Policy
Beziehungen
1
Publikationstyp
Working Paper
Link zur Publikation
Collections
- LIF-SAFE Working Papers [334]