Tenure Choice, Portfolio Structure and Long-Term Care - Optimal Risk Management in Retirement

Hans Fehr () and Maurice Hofmann

No 7783, CESifo Working Paper Series from CESifo

Abstract: We study the interplay between tenure decisions, stock market investment and the public social security system. Housing equity not only serves a dual purpose as a consumption good and as an asset, but also provides insurance to buffer various risks in retirement. Our life cycle model captures these links in order to explain why homeownership in Germany is so low. Our simulation results indicate that the public long-term care as well as the pension system reduce the homeownership rate in Germany by 10-15 percentage points.

Keywords: homeownership; stock market participation; life-cycle models; long-term care (search for similar items in EconPapers)
JEL-codes: C61 D15 G11 H55 (search for similar items in EconPapers)
Date: 2019
New Economics Papers: this item is included in nep-age, nep-dge, nep-eur, nep-ias, nep-rmg and nep-ure
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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Related works:
Journal Article: Tenure choice, portfolio structure and long-term care – Optimal risk management in retirement (2020)
Working Paper: Tenure Choice, Portfolio Structure and Long-term Care - Optimal Risk Management in Retirement (2018)
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Persistent link: https://EconPapers.repec.org/RePEc:ces:ceswps:_7783

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