In this paper we show the extent that home ownership varies over the life-cycle and differs by cohort and by education. We explain these differences in a calibrated model of life-cycle behaviour where households choose labour supply and consumption and also home-ownership status. Home-ownership is associated with greater labour supply both in the model and in the data. We use the model to show the effect that alternative assumptions on capital market imperfections make to home-ownership and to labour supply. Increases in downpayment requirements lead to delays in home ownership. Decreases in the permitted debt to income ratio lead to less home-ownership across the life-cycle.
Explaining Life-Cycle Profiles of Home-Ownership and Labour Supply / O. Attanasio; R. Bottazzi; H. Low; L. Nesheim; M. Wakefield. - ELETTRONICO. - (2006). (Intervento presentato al convegno Society for Computational Economics 12th International Conference on Computing in Economics and Finance tenutosi a Amathus Beach Hotel, Limassol, Cyprus nel 22-24 June, 2006).
Explaining Life-Cycle Profiles of Home-Ownership and Labour Supply
BOTTAZZI, RENATA;WAKEFIELD, MATTHEW JOHN
2006
Abstract
In this paper we show the extent that home ownership varies over the life-cycle and differs by cohort and by education. We explain these differences in a calibrated model of life-cycle behaviour where households choose labour supply and consumption and also home-ownership status. Home-ownership is associated with greater labour supply both in the model and in the data. We use the model to show the effect that alternative assumptions on capital market imperfections make to home-ownership and to labour supply. Increases in downpayment requirements lead to delays in home ownership. Decreases in the permitted debt to income ratio lead to less home-ownership across the life-cycle.I documenti in IRIS sono protetti da copyright e tutti i diritti sono riservati, salvo diversa indicazione.
