Optimal Housing, Consumption, and Investment Decisions over the Life Cycle
推导了股票、债券、消费和住房租赁与所有权的最优生命周期决策，发现年轻人因房价与收入正相关而倾向租房，后期购房并可能投资额外房产或相关金融资产，晚年回归租房。
We derive explicit solutions to life-cycle utility maximization problems involving stock and bond investment, perishable consumption, and the rental and ownership of residential real estate. Prices of houses, stocks and bonds, and labor income are correlated. Because of a positive correlation between house prices and labor income, young individuals want little exposure to house price risk and tend to rent their home. Later in life the desired housing investment increases and will eventually reach and exceed the desired consumption, suggesting that the individual should buy his home—and either additional housing units (for renting out) or house price–linked financial assets. In the final years, preferences shift back to home rental. The derived strategies are still useful if housing positions are only reset infrequently. Our results suggest that markets for real estate investment trusts or other house price–linked contracts lead to nonnegligible welfare gains. This paper was accepted by Wei Xiong, finance.