Intratemporal Substitution between Housing and Nondurable Consumption: Evidence from Reinvestment in Housing Stock

Research output: Working paperResearch

Abstract

I investigate empirically the intratemporal dependence between nondurable consumption and housing. Using the data on maintenance expenditures and self-assessed house value, I separate the measure of housing stock and house prices, and use these data for estimation of the model, which allows for testing whether consumption and housing are characterized by intratemporal nonseparability in the contemporaneous utility. I find evidence in favor of a substitution mechanism between housing and total nondurable consumption. A similar conclusion is reached for some separate consumption categories, such as food, transport, clothing, vacations, and entertainment.
Original languageEnglish
Place of PublicationMünchen
PublisherMunich Personal RePEc Archive
Number of pages27
Publication statusPublished - 26 Aug 2018
SeriesMPRA Paper
Number88667

Keywords

  • Housing
  • Nondurable consumption
  • Intratemporal nonseparability

Cite this

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abstract = "I investigate empirically the intratemporal dependence between nondurable consumption and housing. Using the data on maintenance expenditures and self-assessed house value, I separate the measure of housing stock and house prices, and use these data for estimation of the model, which allows for testing whether consumption and housing are characterized by intratemporal nonseparability in the contemporaneous utility. I find evidence in favor of a substitution mechanism between housing and total nondurable consumption. A similar conclusion is reached for some separate consumption categories, such as food, transport, clothing, vacations, and entertainment.",
keywords = "Housing, Nondurable consumption, Intratemporal nonseparability, Housing, Nondurable consumption, Intratemporal nonseparability",
author = "Natalia Khorunzhina",
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Intratemporal Substitution between Housing and Nondurable Consumption : Evidence from Reinvestment in Housing Stock. / Khorunzhina, Natalia.

München : Munich Personal RePEc Archive, 2018.

Research output: Working paperResearch

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N2 - I investigate empirically the intratemporal dependence between nondurable consumption and housing. Using the data on maintenance expenditures and self-assessed house value, I separate the measure of housing stock and house prices, and use these data for estimation of the model, which allows for testing whether consumption and housing are characterized by intratemporal nonseparability in the contemporaneous utility. I find evidence in favor of a substitution mechanism between housing and total nondurable consumption. A similar conclusion is reached for some separate consumption categories, such as food, transport, clothing, vacations, and entertainment.

AB - I investigate empirically the intratemporal dependence between nondurable consumption and housing. Using the data on maintenance expenditures and self-assessed house value, I separate the measure of housing stock and house prices, and use these data for estimation of the model, which allows for testing whether consumption and housing are characterized by intratemporal nonseparability in the contemporaneous utility. I find evidence in favor of a substitution mechanism between housing and total nondurable consumption. A similar conclusion is reached for some separate consumption categories, such as food, transport, clothing, vacations, and entertainment.

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KW - Nondurable consumption

KW - Intratemporal nonseparability

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BT - Intratemporal Substitution between Housing and Nondurable Consumption

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