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• W2048611094 abstract "This paper analyzes a household's choice of housing tenure within a dynamic utility maximization model that yields simple analytical results under uncertainty of income, housing prices, and rents. Given a housing consumption plan, we show that a decrease in the covariance between a household's earnings and housing rents increases the likelihood of ownership. A household who plans to remain in its home over a long period is more likely to own; a household who plans to remain in its home over a short period is more likely to rent. The higher the covariance between the user cost of a home and that of other properties a household is likely to consider in the future, the more likely the household is to own this home. These predictions of our model find support in recent empirical studies." @default.
• W2048611094 created "2016-06-24" @default.
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• W2048611094 date "2002-09-01" @default.
• W2048611094 modified "2023-10-07" @default.
• W2048611094 title "Tenure choice and the riskiness of non-housing consumption" @default.
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• W2048611094 doi "https://doi.org/10.1016/s1051-1377(02)00100-6" @default.
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