In many countries, house prices are overvalued according to price-to-income ratios. We propose that the borrower s ability to pay through a mortgage is a long-run house price fundamental and find convincing evidence by means of cointegration tests, granger causality, and an elasticity of house...

Many households have only one major asset, a house, which is usually financed through a mortgage contract. One of the most important financial decisions a household has to make is therefore the choice of mortgage type. These can be broadly described as falling into one of two categories: the...

Many households have only one major asset, a house, which is usually financed through a mortgage contract. One of the most important financial decisions a household has to make is therefore the choice of mortgage type. These can be broadly described as falling into one of two categories: the...

We propose that the borrower’s ability to pay through a mortgage is a long-run house price fundamental and …find convincing evidence by means of cointegration tests, granger causality, and an elasticity of house prices with respect to ability to pay close to one. Ability to pay incorporates...

This paper provides an overview of the regulation and supervision of the Belgian financial system from the creation of Belgium in 1830 to the early 21st century. After severe crises, the National Bank of Belgium was created in 1850. The Great Depression led to further reforms, increasing the...

Many markets are one-to-one matching markets in which match-making intermediaries enable pairs of buyers and sellers to negotiate a transaction price for a good or service. Examples are real estate markets in which realtors search for matches between potential home buyers and sellers, or labor...

Hedonic house price indices adjust the average sales prices for the change in the quality of the property sold over time. This paper proposes a framework to disentangle the contribution of each individual dwelling characteristic to this quality change. We apply our framework to a unique dataset...