Both individual and institutional investors face a number of constraints in their consumption and investment decisions. We look at well-motivated constraints on the consumption process as well as liquidity constraints and study their impact on optimal consumption and investment policies under a dynamic discrete time setting.
This dissertation consists of three essays on housing and macroeconomics. The first chapter explores the impact of demographic change on housing price using a heterogeneous agent overlapping generations model. The second chapter examines the relationship between the marginal propensity to consume (MPC) and the housing choice. The third chapter presents...