Articles:
Life Cycle, Mortgage Payment, and Forced Savings
Authors:
Chu-Chia Lin, Chien-Liang Chen, and sue-Jing Lin
Start Page:
109
End Page: 141
Volume: 3
Issue Number: 1
Year: 2000
Publication: International Real Estate Review
Abstract:
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.
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