Title :
Optimal Life-Cycle Portfolio Choice for Chinese Residents with Housing
Author :
Huang, LingLing ; Liu, Zhixin
Author_Institution :
Sch. of Econ. & Manage., North China Univ. of Technol., Beijing, China
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 residentspsila life-cycle portfolio choice.
Keywords :
investment; life cycle costing; optimisation; property market; stochastic processes; Chinese real estate market; Chinese resident; downpayment ratio; housing rental market; optimal life-cycle portfolio choice; risky owner-occupied house; stochastic labor income; stock investment; transaction cost; Conference management; Engineering management; Finance; Financial management; Investments; Portfolios; Predictive models; Risk analysis; Risk management; Technology management; dynamic; housing; optiaml; owning and renting; portfolio choice;
Conference_Titel :
Business Intelligence and Financial Engineering, 2009. BIFE '09. International Conference on
Conference_Location :
Beijing
Print_ISBN :
978-0-7695-3705-4
DOI :
10.1109/BIFE.2009.65
