Publication Type
Working Paper
Version
publishedVersion
Publication Date
5-2019
Abstract
We utilize data from the Singapore Life Panel© survey to empirically investigate the impact of housing equity on consumption of elderly households. Based on panel analysis, we find housing equity value has no significant impact on non-durable consumption for elderly people. The conclusion holds for a battery of robustness check. Moreover, heterogeneity analyses based on subsamples by age of household head, house type, and number of property possessed also show no significant impact of housing equity on consumption in general. Finally, we use scenario analysis to study the Lease Buyback Scheme (LBS), a novel housing equity monetization scheme which allows elderly households to unlock housing equity for retirement financing. We find LBS increases non-durable consumption by about only 0.69%, which may explain the low take-up rate for the LBS.
Keywords
Housing Wealth, Elderly Households, Monetization, Singapore
Discipline
Asian Studies | Economics | Gerontology | Real Estate
Research Areas
Applied Microeconomics
First Page
1
Last Page
27
Publisher
SMU Economics and Statistics Working Paper Series, Paper No. 10-2019
City or Country
Singapore
Citation
CHEN, Lipeng; JIANG, Liang; PHANG, Sock Yong; and YU, Jun.
Housing equity and household consumption in retirement: Evidence from the Singapore Life Panel. (2019). 1-27.
Available at: https://ink.library.smu.edu.sg/soe_research/2264
Copyright Owner and License
Authors
Creative Commons License
This work is licensed under a Creative Commons Attribution-NonCommercial-No Derivative Works 4.0 International License.