The Effects of Mortgage Debt on Assets and Total Resources among Near-Retirement Households

TitleThe Effects of Mortgage Debt on Assets and Total Resources among Near-Retirement Households
Publication TypeThesis
Year of Publication2004
AuthorsPalmer, L
Date Published2004
UniversityUtah State University
CityUnited States -- Utah
KeywordsHousing, Methodology, Net Worth and Assets
Abstract

This study investigated the long-term relation between household leverage through the use of mortgages, and changes in household wealth using the theoretical framework of the life cycle income hypothesis. This study used the 1992 through 2002 waves of the Health and Retirement Study. The characteristics of leveraged and unleveraged households were compared. The relation between household leverage and changes in assets and total resources over the period was modeled using robust regression analysis. Retained or incurred mortgage debt during the study period, relative to not having mortgage debt, had a consistent negative effect on changes in assets and total resources. However, for high-income and more risk-tolerant households, mortgage debt was beneficial and enhanced increases in assets and total resources. Implications for consumers, financial professionals, educators, and tax policymakers were drawn from the results of the study.

URLhttp://proquest.umi.com.proxy.lib.umich.edu/pqdweb?did=790254621&Fmt=7&clientId=17822&RQT=309&VName=PQD
Endnote Keywords

Home economics

Endnote ID

17680

Short TitleThe Effects of Mortgage Debt on Assets and Total Resources among Near-Retirement Households
Citation Key6040