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Optimal life-cycle portfolio choice for chinese residents with housing

  • Huang Lingling*
  • , Liu Zhixin
  • *Corresponding author for this work
  • North China University of Technology

Research output: Chapter in Book/Report/Conference proceedingConference contributionpeer-review

Abstract

We develop a dynamic realistically model of a typical Chinese resident with stochastic labor income, risky owner-occupied house, housing rental market and costly adjustment in housing of Chinese real estate market, and try to analyze the optimal life-cycle portfolio choice for Chinese residents with housing factors. Our analysis indicates that home ownership crowds out stock investment of Chinese residents. Downpayment ratio and transaction cost of housing crowd out the stockholdings of young homeowners, and have significant impact on residents' life-cycle portfolio choice.

Original languageEnglish
Title of host publication2009 International Conference on Business Intelligence and Financial Engineering, BIFE 2009
Pages251-255
Number of pages5
DOIs
StatePublished - 2009
Event2009 International Conference on Business Intelligence and Financial Engineering, BIFE 2009 - Beijing, China
Duration: 24 Jul 200926 Jul 2009

Publication series

Name2009 International Conference on Business Intelligence and Financial Engineering, BIFE 2009

Conference

Conference2009 International Conference on Business Intelligence and Financial Engineering, BIFE 2009
Country/TerritoryChina
CityBeijing
Period24/07/0926/07/09

Keywords

  • Dynamic
  • Housing
  • Optiaml
  • Owning and renting
  • Portfolio choice

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