HOUSING OVER TIME AND OVER THE LIFE CYCLE: A STRUCTURAL ESTIMATION

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• 作者：Wenli Li ; Haiyong Liu ; Fang Yang and Rui Yao
• 刊名：International Economic Review
• 出版年：2016
• 出版时间：November 2016
• 年：2016
• 卷：57
• 期：4
• 页码：1237-1260
• 全文大小：273K
• ISSN：1468-2354

文摘

We construct a model of optimal life-cycle housing and nonhousing consumption and estimate the elasticity between the two goods to be 0.487. The estimate is robust to different assumptions of housing adjustment cost, but sensitive to the choice of sample period and the degree of aggregation of data moments. We then conduct experiments in which house prices and household income fluctuate. Compared with the benchmark, the impact of the shocks on homeownership rates is reduced, but the impact on nonhousing consumption is magnified when housing service and nonhousing consumption are highly substitutable or when the house selling cost is sizable.