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Research Paper Working Papers of the ESRC Research Centre on Micro-Social Change 95-11

Economic analysis of the leaving home decision: theory and a dynamic econometric model


Publication date

01 Apr 1995


The analysis contributes to the economic theory of household formation decisions, deriving predictions about the impact of the price of housing, young adults' income and parental income on the probability that a young adult lives away from hisher parents. It uses longitudinal data on a cohort of Britons born in 1958 (surveyed in the National Child Development Study) to estimate dynamic models of the leaving home process and to test some of the predictions of the theory.


Households and Income Dynamics


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