Prior theoretical and empirical studies, generally suggest that individuals
facing greater uncertainty are less likely to own their home. However, Fu
(1995) [Fu, Y., 1995. Uncertainty, liquidity, and housing choices. Regional
Science and Urban Economics 25, 223-236] finds the theoretical relationshi
p between uncertainty and housing choices is ambiguous. This paper employs
several measures of uncertainty to reexamine the empirical relationship bet
ween uncertainty and housing tenure. Results indicate that income uncertain
ty reduces the likelihood of individuals owning homes at a point in time. (
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