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Author: Mark Richard Rosenzweig
Publisher:
ISBN:
Category : Adult children living with parents
Languages : en
Pages : 36
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Book Description
In many countries of the world the co-residence of young adults aged 25-34 with their parents is not uncommon and in some countries the savings rates of these age groups exceed those of the middle-aged contrary to the standard model of life-cycle savings. In this paper we examine the role of housing prices in affecting the living arrangements of adult family members and their individual savings rates by age. Using unique data from China that enable the re-construction of whole families and identify individual savings regardless of who within the family co-resides in the same household, and exploiting the Chinese government rules determining the supply of land for residential housing, we find that increases in housing prices significantly increase inter-generational co-residence and elevate the savings rates of the young relative to the middle-aged, conditional on income, in part due to the subsidies to the young from sharing housing with parents. Based on our estimates of the effects of housing prices on co-residence and the effects of co-residence on individual savings, we find that the savings rates of the young in China would be 21% lower if housing prices were at the same ratio to disposable incomes as that observed in the United States.
Author: Mark Richard Rosenzweig
Publisher:
ISBN:
Category : Adult children living with parents
Languages : en
Pages : 36
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Book Description
In many countries of the world the co-residence of young adults aged 25-34 with their parents is not uncommon and in some countries the savings rates of these age groups exceed those of the middle-aged contrary to the standard model of life-cycle savings. In this paper we examine the role of housing prices in affecting the living arrangements of adult family members and their individual savings rates by age. Using unique data from China that enable the re-construction of whole families and identify individual savings regardless of who within the family co-resides in the same household, and exploiting the Chinese government rules determining the supply of land for residential housing, we find that increases in housing prices significantly increase inter-generational co-residence and elevate the savings rates of the young relative to the middle-aged, conditional on income, in part due to the subsidies to the young from sharing housing with parents. Based on our estimates of the effects of housing prices on co-residence and the effects of co-residence on individual savings, we find that the savings rates of the young in China would be 21% lower if housing prices were at the same ratio to disposable incomes as that observed in the United States.
Author: Gary V. Engelhardt
Publisher:
ISBN:
Category : House buying
Languages : en
Pages : 50
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Author: Xiao Di Zhu
Publisher:
ISBN:
Category : Estate planning
Languages : en
Pages : 56
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Author: Gary V. Engelhardt
Publisher:
ISBN:
Category :
Languages : en
Pages :
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This paper examines the effects of intergenerational transfers on saving behavior by examining private wealth transfers targeted toward first-time home purchases. The study of transfer behavior in the housing market is advantageous for a number of reasons: the down payment requirement associated with home purchase can be thought of as an important, well-defined borrowing constraint that most U.S. households face; private wealth transfers targeted to home purchases are significant; and home equity is a highly important component of household wealth in the United States. The empirical analysis shows that transfer recipients have a saving rate that is lower than that of non-recipients by as much as 6 percentage points, representing a reduction of 39 to 49 percent in the household saving rate. In addition, households that receive transfers reduce the time required to save for the down payment by 22 percent. For each dollar of transfer received, households increase the dollar amount of the down payment by about 85 cents, allowing them to achieve a higher down payment threshold. Households also increase the value of the home purchased upon receiving a transfer, but by an amount that is much lower than would be possible if the transfer were fully leveraged. The amount of the transfer appears to be targeted to help households achieve certain down payment thresholds that give favorable terms on mortgages. Although the evidence suggests that the availability of a transfer reduces household savings, we cannot reject the alternative hypothesis that transfer recipients are inherently low savers.
Author: Nhung Luu
Publisher:
ISBN:
Category :
Languages : en
Pages : 0
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Impacts of the global rise of housing price from 1980s on the economy has attracted a surging research interest. As housing represent a major share of household expenditure as well as total wealth, it's important to understand the role of housing on wealth inequality. Yet, due to data availability, little has been done to understand this issue. As wealth of households is accumulated from two main sources: capital savings and transfers, it's important to understand how these sources are linked to housing market when there's a shift in housing prices. Thus, the first two chapters of this thesis aim to a better understanding on the importance of housing channel on the economy. More specifically, the first chapter draws attention on the co-movement between housing prices and production output. By introducing different shocks to the economy, we can analyse their impacts on housing prices and capital accumulation as well as the mechanism in which these shocks are transmitted. On the other hand, the second chapter focuses on how intergenerational transfer makes inequality persistent via the housing market. By considering an economy with two different investment assets: housing and capital, we show that that there exists an equilibrium in which housing is more profitable than capital. As the rich family, i.e. the one who inherited relatively higher wealth, can access the housing market while the poor one can't due to the borrowing constraint, inequality maintains in the long run. Furthermore, bequest and intrahousehold transfer are the two essential transmission channels that link to wealth in different way. While intrahousehold transfer is believed to contribute to the development of individual's human capital and hence labour incomes, inheritance plays a decisive role in one's accumulation of capital and wealth. Data from the national transfer account in France showed us that over the last decades, there has been a notable change in a composition of private transfers: from a more dominant share of intrahousehold transfers to a more dominant inheritance one. As this shift triggers two adverse effects, it's therefore interesting to understand why and how it happens as well as how it is related to wealth inequality. These questions are addressed in the third chapter of my thesis.
Author: Nils Grevenbrock
Publisher:
ISBN:
Category :
Languages : en
Pages : 0
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Homeownership rates differ widely across European countries. We document that part of this variation is driven by differences in the fraction of adults co-residing with their parents. Comparing Germany and Italy, we show that in contrast to homeownership rates per household, homeownership rates per individual are very similar during the first part of the life cycle. To understand these patterns, we build an overlapping-generations model where individuals face uninsurable income risk and make consumption-saving and housing tenure decisions. We embed an explicit intergenerational link between children and parents to capture the three-way trade-off between owning, renting, and co-residing. Calibrating the model to Germany we explore the role of income profiles, housing policies, and the taste for independence and show that a combination of these factors goes a long way in explaining the differential life-cycle patterns of living arrangements between the two countries.
Author: United States. Congress. House. Select Committee on Aging. Subcommittee on Retirement Income and Employment
Publisher:
ISBN:
Category : Cost and standard of living
Languages : en
Pages : 36
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Author: Ford Lumban Gaol
Publisher: CRC Press
ISBN: 1315617315
Category : Business & Economics
Languages : en
Pages : 268
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Book Description
This proceedings volume contains papers presented at the 2015 International Conference on Management and Technology in Knowledge, Service, Tourism & Hospitality (SERVE 2015), covering a wide range of topics in the fields of knowledge and service management, web intelligence, tourism and hospitality. This overview of current state of affair
Author: Josh Ryan-Collins
Publisher: John Wiley & Sons
ISBN: 1509523294
Category : Political Science
Languages : en
Pages : 140
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Book Description
Throughout the Western world, a whole generation is being priced out of the housing market. For millions of people, particularly millennials, the basic goal of acquiring decent, affordable accommodation is a distant dream. Leading economist Josh Ryan-Collins argues that to understand this crisis, we must examine a crucial paradox at the heart of modern capitalism. The interaction of private home ownership and a lightly regulated commercial banking system leads to a feedback cycle. Unlimited credit and money flows into an inherently finite supply of property, which causes rising house prices, declining home ownership, rising inequality and debt, stagnant growth and financial instability. Radical reforms are needed to break the cycle. This engaging and topical book will be essential reading for anyone who wants to understand why they can’t find an affordable home, and what we can do about it.
Author:
Publisher:
ISBN:
Category : Reform Judaism
Languages : en
Pages : 828
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