Tenure Choice, Portfolio Structure and Long-term Care - Optimal Risk Management in Retirement
Maurice Hofmann and
Hans Fehr ()
VfS Annual Conference 2018 (Freiburg, Breisgau): Digital Economy from Verein für Socialpolitik / German Economic Association
Abstract:
Our study analyzes the savings behavior of elderly and highlights the interplay between tenure decisions, stock market investment and long-term care risk. Housing equity serves a dual purpose as a consumption good and as an asset, consequently it is important for the optimal risk structure of the financial portfolio. In addition, recent contributions also point out its implicit insurance provision to buffer long-term care shocks. Our stylized life cycle model captures these links and indicates that in Germany long-term care risks may be an important driver for homeownership. In our preferred set-up housing equity is a rather low-risky investment that even encourages stockmarket participation among elderly homeowners.
Keywords: Homeownership; Life-cycle models; Stock market participation; Long-term care insurance provision (search for similar items in EconPapers)
JEL-codes: C61 D15 G11 H55 (search for similar items in EconPapers)
Date: 2018
New Economics Papers: this item is included in nep-age, nep-ias and nep-rmg
References: View references in EconPapers View complete reference list from CitEc
Citations:
Downloads: (external link)
https://www.econstor.eu/bitstream/10419/181517/1/VfS-2018-pid-12515.pdf (application/pdf)
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 (2019) 
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
HTML/Text
Persistent link: https://EconPapers.repec.org/RePEc:zbw:vfsc18:181517
Access Statistics for this paper
More papers in VfS Annual Conference 2018 (Freiburg, Breisgau): Digital Economy from Verein für Socialpolitik / German Economic Association Contact information at EDIRC.
Bibliographic data for series maintained by ZBW - Leibniz Information Centre for Economics ().