Risk Heterogeneity and Credit Supply: Evidence from the Mortgage Market

This paper uses a unique data set on more than 600,000 mortgagecontracts to estimate a credit supply function which allows for risk-heterogeneity. Non-linearity is modeled using quantile regressions. Wepropose an instrumental variable approach in which changes in the taxtreatment of housing transactions are used as an instrument for loandemand. The results are suggestive of considerable risk heterogeneitywith riskier borrowers penalized more for borrowing more.[...]

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Year of publication:	2010
Authors:	Besley, Timothy ; Meads, Neil ; Surico, Paolo
Institutions:	London School of Economics and Political Science
Subject:	Preis \| Hypothek \| mortgage \| Variable \| Kreditangebot \| Credit Supply

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Extent:	386048 bytes 35 p. application/pdf
Series:	London School of Economics and Political Science - Publications
Type of publication:	Book / Working Paper
Language:	English
Classification:	D10 - Household Behavior and Family Economics. General ; E21 - Consumption; Saving ; G21 - Banks; Other Depository Institutions; Mortgages ; Financial theory ; Terms and pricing policy ; Individual Working Papers, Preprints ; No country specification
Source:	USB Cologne (business full texts)

Persistent link: https://www.econbiz.de/10009248804