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.

Back to Previous Page