pension reform, portfolio allocation, housing, OLG model

The Impact of Changing Demographics and Pensions on The Demand for Housing and Financial Assets

Using a calibrated OLG model with several sources of uncertainty we find that the impact of ageing and of reform of social security upon the demand for housing and the level of owner occupation is substantial. The overall structure of household asset holdings - in particular the split between real and financial assets - is sensitive to demographics and to the generosity of state run, pay-as-you go pensions.