A study of housing investment and housing market behaviour
Rantala, Olavi (01.03.1986)
Numero
40Julkaisija
Suomen Pankki
1986
Julkaisun pysyvä osoite on
https://urn.fi/URN:NBN:fi:bof-201708151547Sisällysluettelo
1 INTRODUCTION 7
2 DEMAND FOR HOUSING IN THE LIFE CYCLE MODEL OF CONSUMER BEHAVIOUR 11
2.1 Introduction 11
2.2 A finite horizon model 14
2.3 An infinite horizon model 18
2.4 The effects of transaction and moving costs on the demand for housing and saving 20
2.5 The effect of progressive income taxation on home-ownership and tenure choice 23
3 DEMAND FOR HOUSING AND PORTFOLIO CHOICE UNDER UNCERTAINTY 27
3.1 Introduction 27
3.2 The effect of asset price uncertainty on consumption and demand for housing 28
3.3 The implications of housing as a necessity for the portfolio distribution 36
3.4 Demand for housing under inflation and income uncertainty 38
3.5 Hedging against inflation risk 48
3.6 The determination of housing prices and rents in a partial equilibrium 49
4 CREDIT AND RENTAL MARKET IMPERFECTIONS AND THE HOUSING INVESTMENT PROCESS 53
4.1 Introduction 53
4.2 Tenure choice in imperfect capital and rental markets 56
4.3 The effect of an expected borrowing constraint on consumption and demand for owner-occupied housing stock 59
4.4 The demand for rental housing and saving for a house purchase 65
4.5 Implications for the household portfolio distribution 69
5 HOUSING MARKET ADJUSTMENT UNDER PERFECT FORESIGHT CONDITIONS 73
5.1 Introdution 73
5.2 Consumer behaviour and price determination on the demand side of the housing market 74
5.3 Flow supply in the housing market 79
5.4 The dynamics of price and quantity adjustment in the housing market 80
5.5 Changes in the steady state housing stock and house prices 84
5.6 Empirical implications 87
6 CONCLUDING REMARKS AND A REFERENCE TO FINNISH HOUSEHOLDS' PORTFOLIO DISTRIBUTIONS 90
APPENDICES 95
BIBLIOGRAPHY 113
2 DEMAND FOR HOUSING IN THE LIFE CYCLE MODEL OF CONSUMER BEHAVIOUR 11
2.1 Introduction 11
2.2 A finite horizon model 14
2.3 An infinite horizon model 18
2.4 The effects of transaction and moving costs on the demand for housing and saving 20
2.5 The effect of progressive income taxation on home-ownership and tenure choice 23
3 DEMAND FOR HOUSING AND PORTFOLIO CHOICE UNDER UNCERTAINTY 27
3.1 Introduction 27
3.2 The effect of asset price uncertainty on consumption and demand for housing 28
3.3 The implications of housing as a necessity for the portfolio distribution 36
3.4 Demand for housing under inflation and income uncertainty 38
3.5 Hedging against inflation risk 48
3.6 The determination of housing prices and rents in a partial equilibrium 49
4 CREDIT AND RENTAL MARKET IMPERFECTIONS AND THE HOUSING INVESTMENT PROCESS 53
4.1 Introduction 53
4.2 Tenure choice in imperfect capital and rental markets 56
4.3 The effect of an expected borrowing constraint on consumption and demand for owner-occupied housing stock 59
4.4 The demand for rental housing and saving for a house purchase 65
4.5 Implications for the household portfolio distribution 69
5 HOUSING MARKET ADJUSTMENT UNDER PERFECT FORESIGHT CONDITIONS 73
5.1 Introdution 73
5.2 Consumer behaviour and price determination on the demand side of the housing market 74
5.3 Flow supply in the housing market 79
5.4 The dynamics of price and quantity adjustment in the housing market 80
5.5 Changes in the steady state housing stock and house prices 84
5.6 Empirical implications 87
6 CONCLUDING REMARKS AND A REFERENCE TO FINNISH HOUSEHOLDS' PORTFOLIO DISTRIBUTIONS 90
APPENDICES 95
BIBLIOGRAPHY 113