Showing 1 - 10 of 28,513
In this paper we investigate if financially sophisticated households, as measured by schooling and work experience, are less likely to make financial mistakes when buying and owning a home. Surprisingly, we find that financial sophistication does not have a uniform impact across households'...
Persistent link: https://www.econbiz.de/10013047150
Long-term fixed-rate mortgage contracts protect households against interest rate risk, yet most countries have relatively short interest rate fixation lengths. Using administrative data from the UK, the paper finds that the choice of fixation length tracks the life-cycle decline of credit risk...
Persistent link: https://www.econbiz.de/10014309040
We use a search and matching model to study the heterogeneous welfare effects of housing market illiquidity due to mortgage lock-in over the lifecycle. We find that younger home buyers are disproportionately affected by mortgage lock-in, which disrupts their typical pattern of moving to...
Persistent link: https://www.econbiz.de/10015080986
Heating demand accounts for a large fraction of the overall energy demand of private households in Germany. A better understanding of the adoption and diffusion of energy-efficient and renewables-based residential heating systems (RHS) is of high policy relevance, particularly against the...
Persistent link: https://www.econbiz.de/10014169648
Using transaction-level data on Canadian mortgage contracts we document an increase in the average discount negotiated off the posted price and in rate dispersion. Our aim is to identify the beneficiaries of discounting and to test whether dispersion is caused by price discrimination. The...
Persistent link: https://www.econbiz.de/10013093596
experiences lower. Furthermore, our study is closely linked to the emerging literature of attribution bias in economics and … psychology and provides a scenario in which we can empirically test two leading theories of attribution bias. In our paper, we … restaurants on special occasions. This result can be explained by one theory of attribution bias according to which people have …
Persistent link: https://www.econbiz.de/10013218853
its representativeness: A bias exacerbating effect emerges when consumers’ privacy valuations and frame effects are … negatively correlated. On the other hand, such a volume-maximizing frame may also mitigate the bias by getting a high percentage …
Persistent link: https://www.econbiz.de/10014357535
We consider a consumption model that takes into account the valuation and demand uncertainties that consumers face while using access services. Typical examples of such services include telecommunication services, extended warranties for consumer electronics, and club memberships. We demonstrate...
Persistent link: https://www.econbiz.de/10013111994
Exponential-growth bias (EGB) is the tendency for individuals to partially neglect compounding of exponential growth … substantial bias, with approximately one-third of subjects estimated as the fully-biased type. The magnitude of the bias is …
Persistent link: https://www.econbiz.de/10013036519
This paper develops a two-stage statistical analysis to identify and assess the effect of a sample bias associated with …
Persistent link: https://www.econbiz.de/10012425350