000 02041nam  2200325za 4500
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008160513s2016    oncd    ob   f000 0 eng d
040 |aCaOODSP|beng
041 |aeng|bfre
043 |an-cn---
0861 |aFB3-5/2016-24E-PDF
1001 |aHo, Anson T. Y.
24510|aHousing and tax-deferred retirement accounts |h[electronic resource] / |cby Anson T.Y. Ho and Jie Zhou.
260 |a[Ottawa] : |bBank of Canada, |c2016.
300 |aiii, 46 p.
4901 |aStaff Working Paper, |x1701-9397 ; |v2016-24
500 |a"May 2016."
504 |aIncludes bibliographical references (p. 33-37).
5203 |aAssets in tax-deferred retirement accounts (TDA) and housing are two major components of household portfolios. In this paper, we develop a life-cycle model to examine the interaction between households’ use of TDA and their housing decisions. The model generates life-cycle patterns of home ownership and the composition of net worth that are broadly consistent with the data from the Survey of Consumer Finances. We find that TDA promotes home ownership, as households take advantage of the preferential tax treatments for both TDA and home ownership. They substitute TDA assets for home equity by accumulating wealth in TDA and making smaller down payments (taking out bigger mortgages); consequently, they become homeowners earlier in their lives. On the other hand, housing-related policies, such as a minimum down payment requirement and mortgage interest deductibility, affect households’ housing decisions more than their use of TDA.
69207|2gccst|aSavings
69207|2gccst|aRetirement
69207|2gccst|aHousing
69207|2gccst|aModelling
7001 |aZhou, Jie.
7102 |aBank of Canada.
830#0|aStaff working paper (Bank of Canada)|x1701-9397 ; |v2016-24|w(CaOODSP)9.806221
85640|qPDF|s628 KB|uhttps://publications.gc.ca/collections/collection_2016/banque-bank-canada/FB3-5-2016-24-eng.pdf