@article{ART002574346},
author={Yeom, Dong-ho},
title={A Study on Risk Selection Behavior of Japanese Households: Focusing on the relationship between income level and hyperbolic discount},
journal={Analyses & Alternatives},
issn={2508-822X},
year={2020},
volume={4},
number={1},
pages={105-123},
doi={10.22931/aanda.2020.4.1.005}
TY - JOUR
AU - Yeom, Dong-ho
TI - A Study on Risk Selection Behavior of Japanese Households: Focusing on the relationship between income level and hyperbolic discount
JO - Analyses & Alternatives
PY - 2020
VL - 4
IS - 1
PB - Korea Consensus Institute
SP - 105
EP - 123
SN - 2508-822X
AB - This study analyzes the risk selection behavior of Japanese households. The study approaches the view of ‘the hyperbolic discount’ which is used in behavioral economics based on the rise in mortgage lending by low-income households in the late 2000s. The study focuses on how households risk preferences vary by income levels. The study analyzes the relationship of attitude of household interest rate risk using Binomial Logistic and Heckman two-step estimation method assuming that there are only two types of Adjustable-Rate Mortgage and Fixed-Rate Mortgage. As a result of the empirical analysis, low-income households annual income tend to have a higher proportion of housing debt as same as higher interest rate risk preferences households in proportion to income growth and interest rate risk preferences. Those results indicate that there is possibility of a hyperbolic discount on low-income households in Japan, and support the hypothesis that low-income households are relatively higher household debt ratio because of high utility due to home purchase in the near future (short-term).
KW - Household Debt;Mortgage;Hyperbolic Discount;ARM(Adjustable-Rate Mortgage);FRM(Fixed-Rate Mortgage)
DO - 10.22931/aanda.2020.4.1.005
ER -
Yeom, Dong-ho. (2020). A Study on Risk Selection Behavior of Japanese Households: Focusing on the relationship between income level and hyperbolic discount. Analyses & Alternatives, 4(1), 105-123.
Yeom, Dong-ho. 2020, "A Study on Risk Selection Behavior of Japanese Households: Focusing on the relationship between income level and hyperbolic discount", Analyses & Alternatives, vol.4, no.1 pp.105-123. Available from: doi:10.22931/aanda.2020.4.1.005
Yeom, Dong-ho "A Study on Risk Selection Behavior of Japanese Households: Focusing on the relationship between income level and hyperbolic discount" Analyses & Alternatives 4.1 pp.105-123 (2020) : 105.
Yeom, Dong-ho. A Study on Risk Selection Behavior of Japanese Households: Focusing on the relationship between income level and hyperbolic discount. 2020; 4(1), 105-123. Available from: doi:10.22931/aanda.2020.4.1.005
Yeom, Dong-ho. "A Study on Risk Selection Behavior of Japanese Households: Focusing on the relationship between income level and hyperbolic discount" Analyses & Alternatives 4, no.1 (2020) : 105-123.doi: 10.22931/aanda.2020.4.1.005
Yeom, Dong-ho. A Study on Risk Selection Behavior of Japanese Households: Focusing on the relationship between income level and hyperbolic discount. Analyses & Alternatives, 4(1), 105-123. doi: 10.22931/aanda.2020.4.1.005
Yeom, Dong-ho. A Study on Risk Selection Behavior of Japanese Households: Focusing on the relationship between income level and hyperbolic discount. Analyses & Alternatives. 2020; 4(1) 105-123. doi: 10.22931/aanda.2020.4.1.005
Yeom, Dong-ho. A Study on Risk Selection Behavior of Japanese Households: Focusing on the relationship between income level and hyperbolic discount. 2020; 4(1), 105-123. Available from: doi:10.22931/aanda.2020.4.1.005
Yeom, Dong-ho. "A Study on Risk Selection Behavior of Japanese Households: Focusing on the relationship between income level and hyperbolic discount" Analyses & Alternatives 4, no.1 (2020) : 105-123.doi: 10.22931/aanda.2020.4.1.005
