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Life cycle and housing decisions: a comparison by age cohorts

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Abstract:

The use of decomposition methodologies when the involved variable is continuous is not common in the literature. This article uses this methodology, together with other decomposition methodologies, to explain how age can influence on housing decisions. In particular, we use Spanish data to study whether the age of the householder plays a significant role in influencing household decisions with respect to housing tenure and demand. From the comparison of housing decisions between different groups of households classified by the age of the householders, we conclude that age plays the primary role in explaining the gap between households regarding tenure choice, while it shares its importance with other covariates of the model in the housing demand decision.

Keywords: D12; J71; R21; decomposition analysis; housing demand; housing tenure choice; life cycle pattern-age profile

Document Type: Research Article

DOI: https://doi.org/10.1080/00036846.2013.795276

Affiliations: 1: Economic Analysis, University of Valencia, Avda. Tarongers s/n, Valencia, 46022, Spain 2: Applied Economics, University of Valencia, Avda. Tarongers s/n, Valencia, 46022, Spain

Publication date: 2013-11-01

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