Welfare Effects of Developing the Reverse Mortgage Market in China: An Individual and Social Perspective
Huang Minan (),
Chen Bingzheng () and
Deng Yinglu ()
Additional contact information
Deng Yinglu: Department of Finance, School of Economics and Management, Tsinghua University, Beijing, China
Asia-Pacific Journal of Risk and Insurance, 2013, vol. 8, issue 1, 27-55
The increasing aging population and social security insufficiency have become serious problems in China. Some developed countries, such as the U.S., Canada, and Japan, have developed reverse mortgage markets as solutions for the aging problem. In this article, a theoretical analysis of the welfare and asset allocation effects from introducing a reverse mortgage market into China, with the overlapping generation model and parameters from Chinese factors, was carried out. The results show that the introduction of a reverse mortgage market improved individual and social welfare. It provides more income for both the older and the younger generations. For the older generation, this can reduce the burden on social security; for the younger generation, this can smooth out lifetime consumption for the individual. By making comparisons among different scenarios, this article shows that the welfare effects from a reverse mortgage market would increase with the aging level of society.
References: View references in EconPapers View complete reference list from CitEc
Citations Track citations by RSS feed
Downloads: (external link)
https://www.degruyter.com/view/j/apjri.2014.8.issu ... -0012.xml?format=INT (text/html)
For access to full text, subscription to the journal or payment for the individual article is required.
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:bpj:apjrin:v:8:y:2013:i:1:p:27-55:n:3
Ordering information: This journal article can be ordered from
Access Statistics for this article
Asia-Pacific Journal of Risk and Insurance is currently edited by Michael R. Powers
More articles in Asia-Pacific Journal of Risk and Insurance from De Gruyter
Series data maintained by Peter Golla ().