Analyzing an elder’s desire for a reverse mortgage using an economic model that considers house bequest motivation, random death time and stochastic house price

Chiang, Shu-Ling; Tsai, Ming Shann

doi:10.1016/j.iref.2015.10.040

Cited by 24 publications

(10 citation statements)

References 9 publications

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“…For example, house prices have a squeezing effect on residents' consumption ( 5 , 6 ), and high house prices affect population flow ( 7 – 9 ) and female fertility ( 10 , 11 ), as well as hindering employment, labor mobility supply ( 12 – 14 ), and the entrepreneurial activities of urban adults ( 15 ). Aging has an inhibitory effect on house prices ( 16 , 17 ), the social crime rate increases with the rise of house prices ( 18 ), and public service facilities have a direct impact on house prices ( 19 , 20 ).…”

Section: Literature Reviewmentioning

confidence: 99%

How Do Housing Prices Affect Residents' Health? New Evidence From China

Wang

Liang

2022

Front. Public Health

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This paper aims to explore the effect and mechanism of rising housing prices on residents' physical and mental health. Using data from the China Family Panel Studies from 2014 to 2018, we investigate the impact and mechanism of rising housing prices on the mental and physical health of urban residents through multiple grouping regression and analysis of variance. The study finds that overall, rising housing prices have a positive effect on residents' mental health but a negative effect on physical health, and those who do not own a house show the greatest adverse effect. The impact of rising housing prices on health is mainly reflected in three aspects: the wealth effect, cost effect, and comprehensive environmental expectation effect. Of these, the wealth effect and comprehensive environmental expectation effect play a role in promoting residents' health, whereas the cost effect has a strong inhibitory effect. This paper also analyzes how house prices impact health and finds that having health insurance reduces residents' active health behavior, thus affecting their physical and mental health levels, which has a positive effect on uninsured residents.

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Section: Literature Reviewmentioning

confidence: 99%

How Do Housing Prices Affect Residents' Health? New Evidence From China

Wang

Liang

2022

Front. Public Health

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“…Financially illiterate people with concerns about their investment performance (CN2) and insufficient bequest (CN4) are more likely to work longer (S2). Young and senior retirees who worry about outliving their savings tend to seek job opportunities after they have retired (Vigtel, 2018), and the same holds true for those with a bequest motive (Chiang and Tsai, 2016). Health problems occur as people age, and so, retired individuals are gradually unable to perform housework by themselves and have to pay maintenance and repair fees.…”

Section: Mediation Effectsmentioning

confidence: 99%

Financial literacy and financial strategies: The mediating role of financial concerns

Xue

Gepp²,

O'Neill³

et al. 2020

Australian Journal of Management

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This article analyses how the financial literacy of elderly people affects their decisions on the adoption of various financial strategies. Multiple mediator models with bootstrap techniques are used to identify the mediating mechanisms of financial concerns that transmit the effects of financial literacy onto specific financial strategies. We find (1) financial concerns mediate the majority of financial literacy-strategy nexuses; specifically, financially illiterate people are more likely to have financial concerns and are more likely to cut back on spending, seek job opportunities, increase debts and downsize or sell their residence as a result; (2) financially literate people are more likely to seek professional financial advice, purchase a life annuity, contribute more to superannuation and invest more conservatively, regardless of their concerns. Our findings suggest professional advisors and robo-advisor developers take into account financial concerns when recommending advice. JEL Classification: D14, J14, J26, I31, G11

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“…Consumers with low self‐esteem increase conspicuous consumption to enhance their self‐worth (Bharti et al, 2022), such as using mortgages to buy better houses to satisfy their self‐esteem needs (M. Wang et al, 2008). Chiang and Tsai (2016) analyzed bequest motivation that could influence elderly individuals' desire for a reverse mortgage in an economic model. P. Wang and Han (2021) specifically analyzed the impact of elderly individuals' bequest motivations on their reverse mortgage behavior.…”

Section: Introductionmentioning

confidence: 99%

Multiple psychological characteristics predict housing mortgage loan behavior: A holistic model based on machine learning

Gui

Wang

et al. 2022

PsyCh Journal

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The factors that influence consumers' house choice are debatable. Previous studies have examined the effects of demographic and socioeconomic attributes, physical and environmental features of the house, and isolated single psychological characteristics on housing behavior. However, these factors are still not sufficient to predict consumer housing behavior, particularly when they are measured separately. We construct a holistic model that integrates psychological characteristics including values, personality traits, motivation, decision‐making style, and risk‐seeking together with demographic and socioeconomic factors to jointly predict housing mortgage loan behavior. This study aims to use a newly developed statistical method, “machine learning,” to examine the relationship between multiple psychological characteristics and consumer housing mortgage loan behavior. Data were collected through an online survey (N = 2,270). The results show that the holistic psychological model is effective for predicting consumer housing mortgage loan behavior in the life context. Moreover, by analyzing and comparing the relative impact of all predictors, we find that psychological characteristics made a more important contribution to predicting housing mortgage loan behavior than did traditional factors (demographic and socioeconomic factors). The results provide a new perspective for understanding the effects of how multiple psychological characteristics integrally predict consumers' housing mortgage loan behavior in the real estate market. Theoretical and practical implications for marketing and sales are discussed.

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Analyzing an elder’s desire for a reverse mortgage using an economic model that considers house bequest motivation, random death time and stochastic house price

Cited by 24 publications

References 9 publications

How Do Housing Prices Affect Residents' Health? New Evidence From China

How Do Housing Prices Affect Residents' Health? New Evidence From China

Financial literacy and financial strategies: The mediating role of financial concerns

Multiple psychological characteristics predict housing mortgage loan behavior: A holistic model based on machine learning

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