Found 3 article(s) for author 'Mortgage'

Sources of Inaction in Household Finance: Evidence from the Danish Mortgage Market

Sources of Inaction in Household Finance: Evidence from the Danish Mortgage Market. John Y. Campbell, March 2018, Paper, “A common problem in household finance is that households are often inactive in response to incentives. Mortgages are generally the largest household liability, and mortgage refinancing is an important channel for monetary policy transmission, so inactivity in this setting can be socially costly. We study how the Danish population responds to mortgage refinancing incentives between 2010 and 2014, building an empirical model that separately estimates time-dependent inaction (a low probability of responding to a refinancing incentive in a given quarter), and state-dependent inaction (a psychological addition to the financial cost of refinancing)Link

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Optimal Mortgage Refinancing: A Closed Form Solution

Optimal Mortgage Refinancing: A Closed Form Solution. David Laibson, March 17, 2013, Paper. Households in the US hold $23 trillion in real estate assets. Almost all home buyers obtain mortgages and the total value of these mortgages is $10 trillion, exceeding the value of US government debt. Decisions about mortgage refinancing are among the most important decisions that households make. Borrowers refinance mortgages to change the size of their mortgage and/or to take advantage of lower borrowing rates. Many authors have calculated the optimal refinancing differential when the household is…” Link verified August 21, 2014

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Housing Collateral, Credit Constraints and Entrepreneurship – Evidence from a Mortgage Reform

Housing Collateral, Credit Constraints and Entrepreneurship – Evidence from a Mortgage Reform,  Ramana Nanda, September 2011, Paper, “We study how a mortgage reform that exogenously increased access to credit had an impact on entrepreneurship, using individual-level micro data from Denmark. The reform allows us to disentangle the role of credit access from wealth effects that typically confound analyses of the collateral channel. We find that a $30,000 increase in credit availability led to a 12 basis point increase in entrepreneurship, equivalent to a 4% increase in the number of entrepreneurs… Link

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