We estimate how households trade off immediate costs and uncertain future benefits that
occur in the very long run, 100 or more years away. We exploit a unique feature of housing …

This paper studies the differences in the cost of housing services for renters and
homeowners and calculates the bias that results when we value owner-occupied housing …

We develop a life‐cycle model that explicitly incorporates the dual feature of housing as both
a consumption good and an investment asset. Our analysis indicates that the consumption …

I use a life-cycle model of housing demand to infer expectations about house prices and
home equity requirements for the housing boom of the 2000s from observed household …

This paper demonstrates that, in the context of US housing data, rents and ex ante user
costs diverge markedly—in both growth rates and levels—for extended periods of time, a …

We study the severity of liquidity constraints in the US housing market using a life-cycle
model with uninsurable idiosyncratic risks in which houses are illiquid, but agents can …

We construct a model of optimal life‐cycle housing and nonhousing consumption and
estimate the elasticity between the two goods to be 0.487. The estimate is robust to different …

The maturity date of a mortgage loan marks the end of monthly mortgage payments for
homeowners. In the period after the last payment, homeowners experience an increase in …

A fall in house prices due to a change in fundamental value redistributes wealth from those
long housing (for whom the fundamental value of the house they own exceeds the present …

Economic theory suggests that an increase in the expected length of stay in a dwelling
increases the probability of a household choosing to own a house rather than rent. This …