Tenure Choice, Portfolio Structure and Long-Term Care - Optimal Risk Management in Retirement
| Autor: | Hans Fehr, Maurice Hofmann |
|---|---|
| Jazyk: | angličtina |
| Rok vydání: | 2019 |
| Předmět: |
Economics and Econometrics
Dual purpose 03 medical and health sciences 0502 economics and business Economics ddc:330 G11 050207 economics D15 H55 Life-span and Life-course Studies Risk management Public economics business.industry 030503 health policy & services 05 social sciences Equity (finance) Social security life-cycle models Long-term care insurance provision Long-term care C61 homeownership stock market participation Portfolio long-term care Stock market 0305 other medical science business |
| Popis: | Our study analyzes the savings behavior of elderly and highlights the interplay between tenure decisions, stock market investment and long-term care risk. Housing equity serves a dual purpose as a consumption good and as an asset, consequently it is important for the optimal risk structure of the financial portfolio. In addition, recent contributions also point out its implicit insurance provision to buffer long-term care shocks. Our stylized life cycle model captures these links and indicates that in Germany long-term care risks may be an important driver for homeownership. In our preferred set-up housing equity is a rather low-risky investment that even encourages stockmarket participation among elderly homeowners. |
| Databáze: | OpenAIRE |
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