Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/43231
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dc.contributor.authorMarekwica, Marcelen_US
dc.contributor.authorStamos, Michael Z.en_US
dc.date.accessioned2010-12-15T09:22:11Z-
dc.date.available2010-12-15T09:22:11Z-
dc.date.issued2010en_US
dc.identifier.piurn:nbn:de:hebis:30-87097-
dc.identifier.urihttp://hdl.handle.net/10419/43231-
dc.description.abstractDuring the last decades households in the U.S. have experienced that residential house prices move in a persistent manner, i.e. that returns are positively serially correlated. Since an owner-occupied home is usually the largest investment of a household it is important to understand how households act when they base their consumption and investment decisions on this experience. We show in a setting with housing market cycles and households who can decide whether they rent or own the home, that - besides the consumption and the precautionary savings motive - serial correlation in house prices generates a new speculative motive for homeownership. In particular, we show how good and bad housing market cycles affect homeownership rates, leverage, stock investments and consumption and can explain empirically observed household behavior during housing market boom and bust periods.en_US
dc.language.isoengen_US
dc.publisher|aGoethe University, Center for Financial Studies (CFS) |cFrankfurt a. M.en_US
dc.relation.ispartofseries|aCFS Working Paper |x2010/21en_US
dc.subject.jelG11en_US
dc.subject.jelD91en_US
dc.subject.ddc330en_US
dc.subject.keywordAsset Allocationen_US
dc.subject.keywordPortfolio Choiceen_US
dc.subject.keywordHousing Market Cyclesen_US
dc.subject.keywordReal Estateen_US
dc.titleOptimal life cycle portfolio choice with housing market cyclesen_US
dc.type|aWorking Paperen_US
dc.identifier.ppn641475233en_US
dc.rightshttp://www.econstor.eu/dspace/Nutzungsbedingungenen_US
dc.identifier.repecRePEc:zbw:cfswop:201021-

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