Life Cycle, Mortgage Payment, and Forced Savings
Author
Start Page / End Page
Volume
Issue Number
Year
Publication
Chu-Chia Lin, Chien-Liang Chen, and sue-Jing Lin
109 / 141
3
1
2000
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.
