caa a22 4500 47712979X CHVBK 20180405111701.0 cr unu---uuuuu 170330e19971001xx s 000 0 eng 10.1023/A:1007777532293 doi (NATIONALLICENCE)springer-10.1023/A:1007777532293 Brueckner Jan Department of Economics and Institute of Government and Public Affairs, University of Illinois at Urbana-Champaign, 61820, Champaign, IL aut Consumption and Investment Motives and the Portfolio Choices of Homeowners [Elektronische Daten] [Jan Brueckner] This article investigates the portfolio choices of homeowners, taking into account the investment constraint introduced by Henderson and Ioannides (1983). This constraint requires housing investment by homeowners to be at least as large as housing consumption. It is shown that when the constraint is binding, the homeowner's optimal portfolio is ineffcient in a mean-variance sense. Thus, portfolio inefficiency is not an indication that consumers are irrational or careless in their financial decisions. Instead, inefficiency can be seen as the result of a rational balancing of the consumption benefits and portfolio distortion associated with housing investment. Kluwer Academic Publishers, 1997 portfolio nationallicence overinvestment nationallicence homeownership nationallicence mean-variance inefficient nationallicence The Journal of Real Estate Finance and Economics Kluwer Academic Publishers 15/2(1997-10-01), 159-180 0895-5638 15:2<159 1997 15 11146 https://doi.org/10.1023/A:1007777532293 text/html Onlinezugriff via DOI 1 research-article jats NATIONALLICENCE 856 40 https://doi.org/10.1023/A:1007777532293 text/html Onlinezugriff via DOI NATIONALLICENCE 100 1- Brueckner Jan Department of Economics and Institute of Government and Public Affairs, University of Illinois at Urbana-Champaign, 61820, Champaign, IL aut NATIONALLICENCE 773 0- The Journal of Real Estate Finance and Economics Kluwer Academic Publishers 15/2(1997-10-01), 159-180 0895-5638 15:2<159 1997 15 11146 Metadata rights reserved Springer special CC-BY-NC licence nationallicence BK010053 XK010053 XK010000 NATIONALLICENCE NATIONALLICENCE NL-springer