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dc.contributor.authorBlow, Lauraen_US
dc.contributor.authorNesheim, Larsen_US
dc.date.accessioned2012-10-16T13:17:52Z-
dc.date.available2012-10-16T13:17:52Z-
dc.date.issued2009en_US
dc.identifier.pidoi:10.1920/wp.cem.2009.0409en_US
dc.identifier.urihttp://hdl.handle.net/10419/64655-
dc.description.abstractIn this paper we develop a measure of current expenditures on housing services for owner-occupiers. Having such a measure is important for measuring the relative welfare of households, especially when comparing renters and owners and for measuring inflation. From a theoretical perspective expenditures equal the shadow price of housing services (the marginal rate of substitution between housing services and non-durable consumption) multiplied by the quantity of housing services consumed. In an idealised world, two simple measures of the shadow price are available; the user cost of housing capital and the rental price of an equivalent rental house. However, imperfect capital markets, risk aversion, the tax system, moving costs and systematic differences between houses available in the rental and owner occupied sectors drive a wedge between the shadow price of housing and these other two measures. This paper contributes to previous research by calibrating a lifecycle model of housing investment and consumption to data from the UK Family Expenditure Survey and by developing measures of the shadow price of housing that take into account uncertainty in house prices, interest rates and incomes, dynamic life cycle choices, and liquidity constraints that depend on both income and house value.en_US
dc.language.isoengen_US
dc.publisherCentre for Microdata Methods and Practice (cemmap) Londonen_US
dc.relation.ispartofseriescemmap working paper CWP04/09en_US
dc.subject.jelC88en_US
dc.subject.jelD12en_US
dc.subject.jelE21en_US
dc.subject.jelR21en_US
dc.subject.ddc330en_US
dc.subject.keywordshadow priceen_US
dc.subject.keywordhousingen_US
dc.subject.keywordliquidity constraintsen_US
dc.subject.keywordlifeycle modelsen_US
dc.subject.stwWohneigentumen_US
dc.subject.stwWohnkostenen_US
dc.subject.stwOpportunitätskostenen_US
dc.subject.stwKonsumentenverhaltenen_US
dc.subject.stwLebenszyklusen_US
dc.subject.stwGroßbritannienen_US
dc.titleDynamic housing expenditures and household welfareen_US
dc.typeWorking Paperen_US
dc.identifier.ppn594934877en_US
dc.rightshttp://www.econstor.eu/dspace/Nutzungsbedingungenen_US
Appears in Collections:cemmap working papers, Centre for Microdata Methods and Practice, Institute for Fiscal Studies (IFS)

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