Niku Määttänen

Abstract:We develop a model of the housing market that features both financial and matching frictions. In the model, risk-averse households may save or borrow in order to smooth consumption over time and finance owner housing. Each household either rents or owns its house. Some renter households become dissatisfied with rental housing and want to buy

Journal of Public Economic Theory, forthcoming Publication year: 2011 Language: English Other articles 573

Studies in Nonlinear Dynamics & Econometrics. Forthcoming Publication year: 2011 Language: English Other articles 567

The earnings-related pension system is partially pre-funded in Finland and has currently large reserves. This has roused debate whether the pension funds should take a more active role in promoting employment, growth and domestic ownership of the firms. We analyse the justifications presented for and against overweighting domestic investments in the portfolios of the pension

We study old age care expenditures and means to prepare for them. The expected size of the expenditures is described both from the point of view of individuals and the municipalities who provide the services. We use a numerical stochastic life cycle model to research how much various individuals would benefit from a possibility to

In this study, we review the connection between individuals’ private wealth and their timing of the retirement. The study begins with a review of related international literature. In the second section, we describe how Finnish citizens have responded when asked about the impact of their wealth on the timing of their retirement. In the third