Journal of Korean Institute of Industrial Engineers (대한산업공학회지)

Korean Institute of Industrial Engineers (대한산업공학회)
권호 표지
DOI QR코드

DOI QR Code

Analysis of Chinese Provinces for Introduction of Reverse Mortgage Scheme Using Principal Component Analysis

주성분분석을 활용한 중국 행정구역별 역모기지 도입 순위 분석

  • Wang, Ping (Graduate School of Public Policy and Information Technology, Seoul National University of Science and Technology) ;
  • Kim, Jipyo (Dept. of Industrial and Information Systems Engineering, Seoul National University of Science and Technology)
  • 왕핑 (서울과학기술대학교 IT정책전문대학원) ;
  • 김지표 (서울과학기술대학교 글로벌융합산업공학과)
  • Received : 2013.07.23
  • Accepted : 2014.03.05
  • Published : 2014.04.15
Download PDF
⟨ Previous Next ⟩

Abstract

As a result of the rapid economic growth and birth control policy, China is experiencing low fertility rates and increasing life expectancy, which makes Chinese population aging very quickly and unprepared for their retired life. The reverse mortgage may be an attractive option for the elderly because it is a loan against a house that they do not have to pay back as long as they live there. In this paper, in order to introduce the reverse mortgage scheme in China the factors that could influence the demand of reverse mortgage are reviewed and the Chinese market environment is analyzed. Then the principal component analysis is performed in order to recommend the regions or cities that have higher potential for successful implementation of a reverse mortgage than any other ones in China.

Keywords

References

  1. American Association of Retired Persons (2005), http://www.census.gov.
  2. American Housing Survey (2001), http://www.census.gov.
  3. Bae, J. Y., Lee, J. M., and Lee, J. Y. (2012), Predicting Korea Pro-Baseball Rankings by Principal Component Regression Analysis, Communications for Statistical Applications and Methods, 19(3), 367-379. https://doi.org/10.5351/CKSS.2012.19.3.367
  4. Choi, M. H. (2010), A study on plan to develop reverse mortgage in China, Sungkyunkwan University.
  5. Cha, I. G. and Jung, H. J. (2008), A Study on the Pricing Model in Reverse Mortgage Insurance Using Option Theory, The Journal of Risk Management, 19(1), 3-49.
  6. China's aging population trends forecast research report (2006), China National Committee On Ageing.
  7. Chen J. (2011), Mechanism Research on Risk Pricing Model Reverse Mortgage, Fudan University of China.
  8. Cho, B. D. and Jung, J. H. (2011), Economic Effects of the Reverse Mortgage System : An Input-Output Approach, Korea Review of Applied Economics, 13(2), 359-387.
  9. Choi, M. K. (2008), A Comparative Analysis on the Quality of Life in Major Cities of Korea, a Master's dissertation, Yonsei University.
  10. Choi, T. Y. (2007), Evaluation of the effectiveness of performance indicators for waterworks and development of the application system, The University of Seoul.
  11. Choi, E. H. (2006), An Analysis of Potential Demand for the Reverse Mortgage Program, Korea Planners Association, 43(2), 243-244.
  12. Choi, E. H. (2008), An Analysis of Potential Demand for the Reverse Mortgage Program, Asian pacific Planning Review, 43(2), 243-244.
  13. Korea Housing Finance Corporation (2013), http://www.hf.go.kr.
  14. Kim, S. B. (2009), Expansion of Reverse Mortgage Schemes, Health and welfare policy forum, 156, 15-22.
  15. Kim, S. J. and Yoo, S. J. (2006), A Study on the Deciding Cause of Choosing Reverse Mortgage : Analysis on the Feature of Reverse Mortgage User, The Korea Spatial Planning Review, 50, 125-146.
  16. Kim, J. J. (2013), A Study on Determinants of Changes in Reverse Mortgage Demand and the Policy Implications, The Korea Center for City and Environment Research, 14(2), 13-33.
  17. Kim, Y. S. and Song, M. G. (2012), A study on the baby boomers' reverse mortage choice factors based on ad logit model : with a special reference to consumers' demographic characteristics and information on reverse mortgage, Korea Real Estate Academy, 50, 30-43.
  18. Kim, J. J. and Ma, S. R. (2011), A Study on the Determinants of the Demand for Reverse Mortgage in Korea, Korea Real Estate Academy, 46, 207-225.
  19. Kwon, S. H. (2008), Multivariate Data Analysis and Application, Jayu Academy, Gyeonggido, Korea.
  20. Lee, C. S. and Kim, S. J. (2007), A Study on the Reverse Mortgage Demand by Consumption Function, Korean Appraisal Review, 17(2), 243-244.
  21. Lee, H. J. (2005), A Study on the Evaluation of World Competitiveness Indexes by the Principal Component Analysis, International Area Studies Review, 23, 95-109.
  22. Lee, J. Y. (2008), A Study on the Determinants of Reverse Mortgage Products Choice by Logit Model, Asian pacific Planning Review, 43(4), 168-169.
  23. Lee, J. Y. (2009), Changing characteristics of preliminary reverse mortgage homeowners in the Seoul Metropolitan Area, 1999-2009, Journal of The Korean Regional Development Association, 21(4), 201-226.
  24. Moon,Y. K. and Kim, J. (2004), A Study on the Current Situation and the Utilization of Reverse Mortgage in Our Country, The Journal of Regional Development Studies, 12, 65-88.
  25. Min, I. S. and Cho, Man. (2009), A Study on the Cross-over Risk and Potential Demand for Reverse Annuity Mortgage, Korean Association for Housing Policy Studies, 17(3), 161-187.
  26. Mayer, C. J. and Simons, K. V. (1998), Reverse mortgages and the liquidity of housing wealth, Real Estate Economics, 22(2), 235-255.
  27. National Bureau of Statistics of China (2011, 2012, 2000), http://www.stats.gov.cn/.
  28. No, Y. H. and Shin, J. G. (2007), Trend analysis on quality of employment in Korea using principal component analysis, Korea Research Institute for Vocational Education and Training, 10(3), 45-65.
  29. Oh, H. J. and Cho, D. H. (2009), The Analysis of Succession Propensity of the Rural Elderly for the Introduction of the Farmland Reverse Mortgage System, The Korean Journal of Local Government Studies, 13(2), 93-108.
  30. Park, M. H. (2008), Seeking Solution to the Regional Disparity of Development in China : With Special Reference to the Midwestern Developmental Plan, The Center for Area Studies Seoul National University, 12(1), 157-186.
  31. Park, S. K. and Yoon, J. H. (2008), Analysis of Regional Development Inequality in Metropolitan Area, The Korea Research Institute for Local Administration, 22(4), 31-67.
  32. Ro, K. U. (2010), Present Condition and Subject of Reverse Mortgage Market of Japan, Yeungnam regional development institute yeungnam university, 15(1), 1-27.
  33. Seon, J. Y. and Bon, Y. G. (2005), A Study on the Preception of the Older's for the Introduction of the Reverse Mortgage System, Korea Research Institute for Human Settlements, 45, 119-143.
  34. Sun, L. J. and Zhang, K. D. (2003), The problem of poverty of elderly Chinese city, Population and Economics, 5, 1-7.
  35. Venti, S. F. and Wise, D. A. (1991). Aging and the income value of housing wealth, Journal of Public Economics, 44(3), 371-397. https://doi.org/10.1016/0047-2727(91)90020-3
  36. Wang, D. and Zhang, K. (2005), The Chinese Elderly : How They Live and How Many of Them Are in Poverty, Chinese Journal of Population Science, 1(92), 58-66.

Cited by

  1. Unsupervised Feature Selection Method Based on Principal Component Loading Vectors vol.40, pp.3, 2014, https://doi.org/10.7232/JKIIE.2014.40.3.275