报告人： Zhongfei Li (Southern University of Science and Technology)
地点： Tencent Meeting (935-3935-7603); Passcode (123456)
This work investigates a housing, investment and consumption problem for a household who has stochastic income, consumes on non-housing goods, invests in financial assets, and plans to buy a house for dwelling. When buying a house, the household is required to pay a fraction of the housing value as the down payment and finances the rest through a mortgage loan. The household obtains utility from the consumption (including renting a house) before buying a house, and from the consumption and housing units after buying a house. The household aims to maximize the total expected discounted utility, and to find the optimal consumption and investment strategies before and after buying a house, the optimal time to buy a house and the optimal housing units. The optimization problem is solved by transforming the problem into a combined stochastic control and impulse control problem. The derived results show that the time preference, consumption preference, down payment ratio, and relative risk aversion coefficient play important roles The earlier (later) the household buys a house, the fewer (more) housing units the household buys. If the household is extremely patient or impatient, she will delay buying a house but buy a bigger house. The household that tends to consume non-housing buys a house later but owns a house larger. The household with higher relative risk aversion buys a house earlier but owns a smaller one.
About the Speaker:
Online: Tencent Meeting（ID: 935 3935 7603, Passcode: 123456）
Meeting Link: https://meeting.tencent.com/dm/6xILDn3HGWeV
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