Housing and relative risk aversion

Francesco Zanetti

Economics Letters, 2014, vol. 123, issue 1, 23-25

Abstract: This paper derives closed-form and numerical solutions for relative risk aversion in a standard consumption-based model enriched with housing. The presence of housing enables the household to hedge against unexpected shocks and may decrease relative risk aversion. In addition, housing may generate state-dependent, time-varying risk aversion.

Keywords: Relative risk aversion; Time-varying risk aversion; Housing (search for similar items in EconPapers)
JEL-codes: D81 E21 R21 (search for similar items in EconPapers)
Date: 2014
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Citations: View citations in EconPapers (6)

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Working Paper: Housing and Relative Risk Aversion (2014)
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Persistent link: https://EconPapers.repec.org/RePEc:eee:ecolet:v:123:y:2014:i:1:p:23-25

DOI: 10.1016/j.econlet.2014.01.010

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