Household Background Risk And Self-Housing Liability

Theoretical And Empirical Research Based On CHFS Data

DOI

10.2991/aebmr.k.220307.481How to use a DOI?

Keywords

Background Risk; Self-housing Liability; Hedge; Prospect Theory

Abstract

The potential motivation for families to bear self-housing liabilities is to hedge background risks. Probit and Tobit models are established based on the data of China Household Finance Survey in 2017. The regression results show that households pay more attention to the background risks on the liability side than on the asset side, and the background risks on the liability side will weaken the influence of the background risks on the asset side. In addition, families in all life states will be affected by housing risks and committed expenditures. And the loan constraints have significant life-cycle characteristics. Generally, families had better to use self-housing liabilities at a young age rather than at an old age as much as possible in order to smooth the distribution of background risks in their whole life.

Copyright

© 2022 The Authors. Published by Atlantis Press International B.V.

Open Access

This is an open access article under the CC BY-NC license.

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TY  - CONF
AU  - Huang Lei
AU  - Zhu Tao
PY  - 2022
DA  - 2022/03/26
TI  - Household Background Risk And Self-Housing Liability
BT  - Proceedings of the 2022 7th International Conference on Financial Innovation and Economic Development (ICFIED 2022)
PB  - Atlantis Press
SP  - 2953
EP  - 2958
SN  - 2352-5428
UR  - https://doi.org/10.2991/aebmr.k.220307.481
DO  - 10.2991/aebmr.k.220307.481
ID  - Lei2022
ER  -