Housing, Mortgages, and Self-control

Kathrin Schlafmann*

*Corresponding author af dette arbejde

Publikation: Bidrag til tidsskriftTidsskriftartikelForskningpeer review

Abstrakt

Using a quantitative theoretical framework this paper analyzes how problems of self-control influence housing and mortgage decisions. The results show that people with stronger problems of self-control are less likely to become homeowners, even though houses serve as commitment for saving. The paper then investigates the welfare effects of regulating mortgage products if people differ in their degree of self-control. Holding house prices fixed, higher down payment requirements and restrictions on refinancing turn out to be beneficial to people with sufficiently strong problems of self-control, even though these policies restrict access to the commitment device.
OriginalsprogEngelsk
TidsskriftReview of Financial Studies
Vol/bind34
Udgave nummer5
Sider (fra-til)2648-2687
Antal sider40
ISSN0893-9454
DOI
StatusUdgivet - maj 2021

Bibliografisk note

Published online: 16 September 2020.

Emneord

  • Self-control
  • Homeowners
  • Restrictions

Citationsformater