Modelling the Demand for Housing over the Lifecycle

B-Tier
Journal: Review of Economic Dynamics
Year: 2012
Volume: 15
Issue: 1
Pages: 1-18

Score contribution per author:

0.402 = (α=2.01 / 5 authors) × 1.0x B-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

This paper models individual demand for housing over the life-cycle, and shows the implications of this behaviour for aggregate demand. Individuals delay purchasing their first home when incomes are low or uncertain. This delay is exacerbated by downpayment constraints. Higher house prices lead households to downsize, rather than to stop being home-owners. In aggregate, positive house price shocks lead to consumption booms among the old and a fall in aggregate demand for housing, whereas positive income shocks lead to consumption booms among the young and a rise in aggregate demand for housing. (Copyright: Elsevier)

Technical Details

RePEc Handle
repec:red:issued:10-53
Journal Field
Macro
Author Count
5
Added to Database
2026-01-24