In this paper, we study a household’s optimal life-cycle housing choices by calibrating a model with uninsurable … choose to convert illiquid home equity to liquid asset to finance non-housing consumption in the absence of lower borrowing … the importance of labor income and house price risks in housing decisions. In comparison to the benchmark case, a higher …

-Sponsored Enterprises. We set up an economy with a housing and mortgage market where the government provides banks with insurance against …

, mortgage innovation, and life-cycle housing choices contribute to the aggregate residential investment dynamics. Our analysis … is based on a life-cycle housing model consistent with evidence on housing choices from the NLSY …

for approximately thirty percent of the market value of the housing stock and is approximately equal to forty percent of …

financial wealth, and much less housing wealth, than the household sector in most of Europe. We address this fact using a …

In a model with housing collateral, the ratio of housing wealth to human wealth shifts the conditional distribution of … consumption growth. In the model, a decrease in house prices reduces the collateral value of housing, increases household exposure …. Regional risk-sharing patterns for US metropolitan areas lend direct support to the housing collateral channel. In times with a …