Optimal life-cycle consumption and investment decisions in China: the role of housing
We solve a dynamic realistically calibrated life- cycle model to study the optimal consumption and investment decision for Chinese families with housing and related factors,and try to find the relationships between household asset allocation and its housing decision. Our analysis demonstrates that the housing position is hump-shaped during life-cycle. It means that the household may optimal choose to refinance his mortgage,and cash out a fraction of his house equity to ensure his consumption at the latter stage of life-cycle. The home ownership rate is also hump- shaped in age,it means that some households may optimal choose to sell their house,and become renters again at the latter stage of life-cycle. Our analysis also indicate that house price risk crowds out of stockholdings because of protective saving,while down payment ratio reduces stockholdings of household due to the illiquid home equity restrictions.
optimal life-cycle housing consumption and investment decision
Zhixin Liu LingLing Huang
School of Economics & Management,BeiHang University,P. R. China,100083 School of Economics & Management,BeiHang University,P. R. China. 100083
国际会议
The First International Conference on Management Innovation(ICMI 2007)(管理创新会议)
上海
英文
1078-1083
2007-06-04（万方平台首次上网日期，不代表论文的发表时间）