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

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 incom...

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Bibliographic Details
Published inJournal of applied finance and banking Vol. 10; no. 6; pp. 1 - 14
Main Author Wang, Huaming
Format Journal Article
LanguageEnglish
Published Athens Scientific Press International Limited 01.11.2020
Subjects
Consumer goods
Consumption
Economic growth
Expenditures
Family income
Households
Hypotheses
Independent variables
Loans
Market prices
Mortgages
Variables
China
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Summary: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".
ISSN:1792-6580
1792-6599