IDEAS home Printed from https://ideas.repec.org/a/kap/jrefec/v28y2004i4p319-337.html
   My bibliography  Save this article

The Economics of Housing Savings Plans

Author

Listed:
  • Pnina O. Plaut
  • Steven E. Plaut

Abstract

Housing Savings Plans (HSP) are contractual savings products in which a household is granted a mortgage at preferential terms (or option for such) in exchange for accumulating savings in the plan and in the institution offering it. As such, they represent a bundle of savings and borrowing financial services. While such plans are common in some countries, the reasons for their use have not been fully explored. In some cases, HSPs are used because financial markets and institutions have not reached sufficient levels of development to attract savings or raise capital for housing finance, and in other cases, tax and subsidy incentives may be at play. Here, we ask under which circumstances households and financial institutions will voluntarily contract to participate in HSPs even in advanced capital markets and in the absence of tax/subsidy incentives. We argue that the HSPs may be chosen by households because of their hedging qualities. We model HSPs and show how changes in variables affect the willingness of households to join the HSP and the characteristics of any HSP chosen.

Suggested Citation

  • Pnina O. Plaut & Steven E. Plaut, 2004. "The Economics of Housing Savings Plans," The Journal of Real Estate Finance and Economics, Springer, vol. 28(4), pages 319-337, May.
    • Handle: RePEc:kap:jrefec:v:28:y:2004:i:4:p:319-337
    as

    Download full text from publisher

    File URL: http://journals.kluweronline.com/issn/0895-5638/contents
    Download Restriction: Access to full text is restricted to subscribers.
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Kirsch, Steffen & Burghof, Hans-Peter, 2018. "The efficiency of savings-linked relationship lending for housing finance," Journal of Housing Economics, Elsevier, vol. 42(C), pages 55-68.
    2. Polterovich, Victor & Starkov, Oleg, 2006. "Проблема Трансплантации Ипотечных Институтов В Переходных Экономиках: Роль Стройсберкасс [The Problem of Transplantation of Housing Finance Institutions in Transition Economies: the Role of Contrac," MPRA Paper 21996, University Library of Munich, Germany.
    3. Timo Hener, 2013. "Labeling Effects of Child Benefits on Family Savings," ifo Working Paper Series 163, ifo Institute - Leibniz Institute for Economic Research at the University of Munich.
    4. Ильинский Д.Г., 2016. "Свойства Линеек Ссудо-Сберегательных Планов," Журнал Экономика и математические методы (ЭММ), Центральный Экономико-Математический Институт (ЦЭМИ), vol. 52(2), pages 40-59, апрель.
    5. Timo Hener, 2017. "Effects of labeled child benefits on family savings," Review of Economics of the Household, Springer, vol. 15(3), pages 759-777, September.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:kap:jrefec:v:28:y:2004:i:4:p:319-337. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.