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Saving up or settling down: Home ownership over the life cycle

Halket, J and Vasudev, S (2014) 'Saving up or settling down: Home ownership over the life cycle.' Review of Economic Dynamics, 17 (2). 345 - 366. ISSN 1094-2025

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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 fall in mobility over the life cycle. While some households rent due to borrowing constraints in the mortgage market, factors that affect propensities to save and move, such as risky house values and transactions costs, are equally important determinants of the ownership rate. © 2013 The Authors.

Item Type: Article
Subjects: H Social Sciences > HB Economic Theory
Divisions: Faculty of Social Sciences > Economics, Department of
Depositing User: Jim Jamieson
Date Deposited: 12 Nov 2013 16:02
Last Modified: 27 Jan 2021 11:15

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