Life Cycle, Mortgage Payment, and Forced Savings
AbstractA common puzzling phenomenon over the household survey of Taiwan is that the renters' saving rate is higher than that of the owners', while the latter has a higher average income than the former. One reason for this feature is that certain housing owners have to pay a greater amount of mortgage payment that is not included in saving. And on the other hand, the saving decision is correlated with the tenure decision, while the tenure decision is also correlated with the household's life cycle, in addition to income. And therefore, when one tries to estimate the correct saving rate, he or she has to consider the household's life cycle as well. In this study, we apply a data set of the household survey of Taiwan to investigate the correlation of life cycle, mortgage payment, and forced savings. First of all, we estimate the saving rate in a traditional way, and then estimate the saving rate after the adjustment of mortgage payment. To figure out the correct saving rate with the tenure decision, we evaluate different households' saving behaviors according to different cohorts, and consequently, we could check how life cycle plays its role in this model. And our finding is, that for every cohort, the forced savings is significant for owners with mortgage and for renters as well.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoArticle provided by Asian Real Estate Society in its journal International Real Estate Review.
Volume (Year): 3 (2000)
Issue (Month): 1 ()
Contact details of provider:
Postal: Asia Real Estate Society, 51 Monroe Street, Plaza E-6, Rockville, MD 20850, USA
Web page: http://www.asres.org/
Postal: Asian Real Estate Society, 51 Monroe Street, Plaza E-6, Rockville, MD 20850, USA
Find related papers by JEL classification:
- L85 - Industrial Organization - - Industry Studies: Services - - - Real Estate Services
You can help add them by filling out this form.
reading list or among the top items on IDEAS.Access and download statisticsgeneral information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (IRER Graduate Assistant/Webmaster).
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.