A Study of Mortgage Borrower Prepayment Behavior in Taiwan:A Censored Regression Approach
| Autor: | Huang YI HSIN, 黃以馨 |
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| Rok vydání: | 2005 |
| Druh dokumentu: | 學位論文 ; thesis |
| Popis: | 93 The study discusses the mortgage borrower prepayment behavior in Taiwan. The differences to the prior studies are as follows. Firstly, prior studies often put emphases on the mortgage borrower’s prepaying the whole mortgage in one payment. Nevertheless Mortgage borrowers in Taiwan have preferred partial prepayment. So those studies have some biases. So our study emphasizes the partial prepayment behavior. Secondly, prior studies recorded the mortgage borrower’s final choice in the whole investigation period. Our study uses all months’ choices and considers as the individual samples. Thirdly, prior studies often discussed the discrete choices of prepaying, normal payment and default. Our study investigates mortgage borrower prepay or not and if they do prepay how much they will pay. Our study applies the censored regression approach. Our study uses the Powell’s least absolute deviations estimation. The conclusion shows that high education, single and free occupation of borrower and small ages, small Principle-To-Value, no prepayment record and large Loan-To-Value of mortgage have more prepayment dollars. Because of floating interest rate of mortgage, the variables about interest rate are not significant. Our study hopes the parameters estimating the prepayment dollars can contribute to banks in cash flow management. |
| Databáze: | Networked Digital Library of Theses & Dissertations |
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