Journal of Applied Finance & Banking

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

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  • 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.