A General Equilibrium Model of Housing, Taxes, and Portfolio Choice

Investigating the Economic Effects of Taxes on Pollutants in Iran Using a Computable General Equilibrium Model

This study investigates the economic effects of taxes on pollutants in Iran in 2011. For this purpose, computable general equilibrium model with 2011 social accounting matrix is applied. Six scenarios taxes on pollutants have defined and estimatethe effects on economic variables and production quantity of activities. The results show that the taxes on pollutants is conducive to environmental im...

New Evidence on Taxes and Portfolio Choice

Housing, Portfolio Choice, and the Macroeconomy

Much of the macroeconomics literature dealing with wealth distribution has become abstracted from modeling housing explicitly. This paper investigates the properties of the wealth distribution and the portfolio composition regarding housing and equity holdings and their relationship to macroeconomic shocks. To this end, I construct a business cycle model in which agents differ in age, income, a...

Portfolio Choice in the Presence of Housing

I show that investment in housing plays a crucial role in explaining the patterns of cross sectional variation in the composition of wealth and the level of stockholdings observed in portfolio composition data. Due to investment in housing, younger and poorer investors have limited ̄nancial wealth to invest in stocks, which reduces the bene ̄ts of equity market participation. House price risk cr...

Marriage, Housing, and Portfolio Choice: A Test of Grossman-Laroque

The Grossman and Laroque (1990) theory of adjustment costs in consumption has been widely applied to analyze consumption and …nancial market behavior. An important prediction of such adjustment cost models is that individuals who have recently purchased a house are more risk averse than those who have lived in their homes for a long time. In this paper, we test this prediction using an instrume...