TY - UNPB
T1 - Intratemporal Substitution between Housing and Nondurable Consumption
T2 - Evidence from Reinvestment in Housing Stock
AU - Khorunzhina, Natalia
PY - 2018/8/26
Y1 - 2018/8/26
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.
KW - Housing
KW - Nondurable consumption
KW - Intratemporal nonseparability
KW - Housing
KW - Nondurable consumption
KW - Intratemporal nonseparability
M3 - Working paper
T3 - MPRA Paper
BT - Intratemporal Substitution between Housing and Nondurable Consumption
PB - Munich Personal RePEc Archive
CY - München
ER -