The purpose of this article is to review the literature on three prominent theories in consumer
financial behavior. The theories are the life‐cycle theory, prospect theory, and theory of …

We examine the optimal dynamic portfolio decisions for investors who acquire housing
services from either renting or owning a house. Our results show that when indifferent …

Using a property-level data set of houses in Los Angeles County, I estimate that about 15%
of the recent surge in mortgage defaults is attributable to early cohorts of homebuyers who …

I investigate household interest rate risk management by solving a life‐cycle asset allocation
model that includes mortgage and bond portfolio choice. I find that most investors prefer an …

In recent decades US households have experienced residential house prices moving
persistently, that is, returns being positively serially correlated. We set up a realistically …

INCOMPLETE! Preliminary and incomplete lecture notes intended for use at an advanced
master's level or an introductory Ph. D. level. I appreciate comments and corrections from …

We study the dynamic consumption-portfolio problem over the life cycle, with respect to tax-
deferred investing for investors who acquire housing services by either renting or owning a …

We study the welfare effect of tax-optimizing portfolio decisions in a life cycle model with
unspanned labor income and realization-based capital gain taxation. For realistic …

We explore the role of habit formation in housing in explaining the life-cycle household
allocations. Empirical studies about households in the US reveal that the housing profile …

I study optimal life-cycle housing and portfolio choice under stochastic inflation and real
interest rates. Investors can choose between an adjustable-rate mortgage (ARM) and a fixed …