Online appendix for the Review of Economic Dynamics article

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...

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...

Are households more likely to be homeowners when “housing risk” is higher? We show that home‐ownership rates and loan‐to‐value (LTV) ratios at the city level are strongly negatively correlated with local house price volatility. However, causal inference is confounded by house price...

of financial constraints, housing illiquidities and house price risk to home ownership over the life cycle. We show the existence of a finite dimensional state space, steady state equilibrium with stochastic prices. The calibrated economy is able to explain most of the rise in home ownership...

Are households more likely to be homeowners when “housing risk” is higher? We show that home-ownership rates and loan-to-value (LTV) ratios at the city level are strongly negatively correlated with local house price volatility. However, causal inference is confounded by house price levels,...

Using a novel data set of rental listings, we find that homeownership rates are high where rent-to-price ratios are low but rentals are scarce. We model the provision of owner-occupied versus rental houses as a competitive search economy where households have private information over their...

Are households more likely to be homeowners when “housing risk” is higher? We show that homeownership rates and loan-to-value (LTV) ratios at the city level are strongly negatively correlated with house price levels and the variance of house price growth rates in the city. But both price...

We model the provision of owner-occupied versus rental housing services as a competitive search economy where households have private information over their expected duration. Owning solves the private information problem at the cost of double search. With public information, households with low...

We define and prove the existence of an equilibrium for Bewley-style models of heterogeneous agents in incomplete markets with discrete and continuous choices. Our sample model also features endogenous price volatility across many markets (locations) but still has a steady state equilibrium with...