Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/82853
Authors: 
Hochguertel, Stefan
van Soest, Arthur
Year of Publication: 
1998
Series/Report no.: 
Working Paper, Department of Economics, Uppsala University 1998:19
Abstract: 
We analyze households' joint investment decisions for financial wealth and homes. We use a bivariate censored regression model with endogenous switching. Fixed costs or transaction costs are captured by an unobserved nonzero censoring threshold. The model allows for spill-over effects of a binding threshold for one asset on the demand for the other asset. We find that tenure choice affects the level of financial wealth. Our results do not support the view that people first accumulate financial wealth before acquiring homes.This can be due to the absence of down payments constraints in the Netherlands. <p>
Subjects: 
Housing demand
Household saving
Portfolio choice
Limited dependent variables
JEL: 
C34
D12
G11
R21
Document Type: 
Working Paper

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