Logo
Munich Personal RePEc Archive

A Life-Cycle Analysis of Social Security with Housing

Chen, Kaiji (2009): A Life-Cycle Analysis of Social Security with Housing.

[thumbnail of MPRA_paper_15509.pdf]
Preview
PDF
MPRA_paper_15509.pdf

Download (327kB) | Preview

Abstract

This paper incorporates two features of housing in a life-cycle analysis of social security: housing as a durable good and housing market frictions. We find that with housing as a durable good unfunded social security substantially crowds out housing consumption throughout the life cycle. By contrast, aggregate non-durable consumption is higher when social security is present, although it is postponed until late in life. Moreover, in the presence of housing market frictions, social security lowers the aggregate home ownership rate and reduces the average size of owner-occupied housing. The effects of social security on housing position, furthermore, exhibit substantial heterogeneity across households of different income levels.

Atom RSS 1.0 RSS 2.0

Contact us: mpra@ub.uni-muenchen.de

This repository has been built using EPrints software.

MPRA is a RePEc service hosted by Logo of the University Library LMU Munich.