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 …-dependent housing expenditure share, (iii) non-housing consumption being significantly more sensitive to wealth and income shocks than …

housing services, stochastic and unspanned labor income, stochastic house prices, home renting and owning, stock investments …, and portfolio constraints. The model features habit formation for housing consumption, which leads to optimal decisions … agents and then gradually increasing over life, (ii) that the housing expenditure share is age- and wealth-dependent, (iii …

rate to fast rising housing prices and other costs of living in China. This article uses simple economic logic to show that … rising housing prices and living costs per se cannot explain China's high household saving rate. Although borrowing … constraints and demographic changes can help translate housing prices to the aggregate saving rate, quantitative simulations using …

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 …-dependent housing expenditure share, (iii) non-housing consumption being significantly more sensitive to wealth and income shocks than …

high saving rate to fast-rising housing prices in China. However, cross-sectional data do not show a significant … relationship between housing prices and household saving rates. This article uses a simple consumption-saving model to explain why … rising housing prices per se cannot explain China's high household saving rate. Although borrowing constraints and …

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 …-dependent housing expenditure share, (iii) non-housing consumption being significantly more sensitive to wealth and income shocks than …

We study the transition in and out of homeownership during the 2008 housing market bust, using detailed micro …

housing services, stochastic and unspanned labor income, stochastic house prices, home renting and owning, stock investments …, and portfolio constraints. The model features habit formation for housing consumption, which leads to optimal decisions … agents and then gradually increasing over life, (ii) that the housing expenditure share is age- and wealth-dependent, (iii …

In this paper, I study the role of housing for wealth accumulation and the determination of the equilibrium real … increase in the share of housing wealth of almost 8 pp. All of these patterns are broadly in line with the empirical …