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Florian OSWALD (SciencesPo Paris) – "The Effect of Homeownership on the Option Value of Regional Migration"
Time: 12:15 pm – 1:30 pm
Date: 2nd of April 2019
Place: Room 3001
Florian OSWALD (SciencesPo Paris) – “The Effect of Homeownership on the Option Value of Regional Migration”
Abstract: This paper estimates a lifecycle model of consumption, housing choice and migration in the presence of aggregate and regional shocks, using the Survey of Income and Program Participation (SIPP). The model delivers structural estimates of moving costs by ownership status, age and family size that complement the previous literature. Using the model I first show that migration elasticities vary substantially between renters and owners, and I estimate the consumption value of having the option to migrate across regions when there are regional shocks. This value is 19% of lifetime consumption on average, and it varies substantially with household type. The measure can be related to previous estimates in Yagan (2013) when thinking about how much insurance is provided to consumers through migration. (This paper previously circulated as Regional Shocks, Migration and Homeownership).
Laurent DAVEZIES (Laboratoire de Microéconométrie-CREST)
Benoit SCHMUTZ (Laboratoire de Microéconométrie-CREST)
Arne UHLENDORFF (Laboratoire de Microéconométrie-CREST)