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Does Household Mortgage Really Restrain Consumption? an Analysis Based on the Data of China Family Panel Studies in 2018

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  • Huaming Wang

Abstract

Study on household mortgage has profound significance to better understand the economics. This paper finds that the household mortgage plays a positive role on consumption by examining the data of CFPS in 2018. Using the model that introduces interaction term, we argue that the mortgage has an income-effect for the comparatively low interest rate. The empirical result also shows the income-effect is greater in the “initiative mortgage households†. JEL classification numbers: G21, D12, D14. Keywords: Consumption, Household mortgage, CFPS, Income-effect.

Suggested Citation

  • Huaming Wang, 2020. "Does Household Mortgage Really Restrain Consumption? an Analysis Based on the Data of China Family Panel Studies in 2018," Journal of Applied Finance & Banking, SCIENPRESS Ltd, vol. 10(6), pages 1-1.
    • Handle: RePEc:spt:apfiba:v:10:y:2020:i:6:f:10_6_1
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    References listed on IDEAS

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    More about this item

    Keywords

    consumption; household mortgage; cfps; income-effect.;
    All these keywords.

    JEL classification:

    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • D14 - Microeconomics - - Household Behavior - - - Household Saving; Personal Finance

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