Behavior of Household Portfolios in France: the Role of Housing

The two‐dimensional aspects of dwellings occupied by their owner, consumption and investment, make the analysis of households’ portfolio choice and the analysis of housing purchases more difficult. But it seems difficult to analyze portfolio decisions without taking account of owner‐occupied housing that has an important effect on wealth composition over the life cycle. In this paper we estimated a portfolio choice model where the different dwellings are defined as assets and we showed that we cannot separate investment decisions from housing consumption. Especially, risky assets demand should be greatly influenced by attitudes toward home property.