Optimal Life-Cycle Portfolio Choice for Chinese Residents with Housing

摘要

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.