Mobility and Optimal Tenure Choice
Journal of Housing Economics
Özyıldırım, S., Önder, Z., & Yavas, A. (2005). Mobility and optimal tenure choice. Journal of Housing Economics, 14(4), 336-354.
Please cite this item using this persistent URLhttp://hdl.handle.net/11693/11469
In this paper, we offer a dynamic model of the optimal tenure behavior of an individual who faces the possibility of moving multiple times during his lifetime. We also investigate the lifetime effects of such factors as income tax, property tax, transaction costs, and mortgage rates on the household's tenure choice. The agents in the model utilize a genetic algorithm, a probabilistic search approach, to determine their optimal lifetime tenure choice path. The agents are forward looking in that they anticipate such possible events as changes in jobs, marital status, household size, or dissatisfaction with current residence. Our results suggest several housing policy implications and explain some of the empirical findings in the literature. (c) 2005 Elsevier Inc. All rights reserved.
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