Byron Spencer

An econometric analysis of housing as both a consumption good and a risky asset

The demand for housing is analysed within the context of an overall household expenditure system in which housing is viewed as both a consumption good and an investment good. The risk associated with holding housing as an asset is given special attention. The expenditure system is estimated using Canadian survey data and the results are interpreted. The results suggest that households are risk-averse and that the degree of risk-aversion increases with age.