Mental Accounting in the Housing Market
Copyright policy )Mental Accounting in the Housing Market
We use a survey to identify a consumer bias with regard to different sources of debt-financing. Less salient debt may generate psychological benefits. This should be weighed against the possible economic costs of a sub-optimal capital structure; but low levels of financial literacy make it unlikely that all households perceive the full economic costs. As a result there is a bias in favour of less salient debt. In a market with limited scope for arbitrage this consumer bias is likely to generate inefficiencies. We examine such a market in both theory and practice. The predictions of our model are given strong support by market data.
- École Supérieure des Sciences Économiques et Commerciales France
- University of Zurich Switzerland
- Norges Bank Norway
- Research Institute of Industrial Economics Sweden
capital structure, VDP::Samfunnsvitenskap: 200::Økonomi: 210::Samfunnsøkonomi: 212, Co-op, salience, Household Finance; Mental Accounting; Co-op; Capital Structure, Immobilienfinanzierung, Haushaltsökonomik, household finance, 10007 Department of Economics, IEW Institute for Empirical Research in Economics (former), Capital Structure, salience; housing market; household finance; co-op; capital structure, D12, G32, Konsumentenverhalten, Mental Accounting, JEL: G21, ddc:330, G14, Household Finance, co-op, 330 Economics, JEL: D12, housing market, G21, Kapitalstruktur, JEL: G14, Household finance, mental accounting, co-op, capital structure, Schweden, JEL: G32, jel: jel:G21, jel: jel:D12, jel: jel:G32, jel: jel:G14
capital structure, VDP::Samfunnsvitenskap: 200::Økonomi: 210::Samfunnsøkonomi: 212, Co-op, salience, Household Finance; Mental Accounting; Co-op; Capital Structure, Immobilienfinanzierung, Haushaltsökonomik, household finance, 10007 Department of Economics, IEW Institute for Empirical Research in Economics (former), Capital Structure, salience; housing market; household finance; co-op; capital structure, D12, G32, Konsumentenverhalten, Mental Accounting, JEL: G21, ddc:330, G14, Household Finance, co-op, 330 Economics, JEL: D12, housing market, G21, Kapitalstruktur, JEL: G14, Household finance, mental accounting, co-op, capital structure, Schweden, JEL: G32, jel: jel:G21, jel: jel:D12, jel: jel:G32, jel: jel:G14
selected citations These citations are derived from selected sources.This is an alternative to the "Influence" indicator, which also reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).3 popularity This indicator reflects the "current" impact/attention (the "hype") of an article in the research community at large, based on the underlying citation network.Average influence This indicator reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).Average impulse This indicator reflects the initial momentum of an article directly after its publication, based on the underlying citation network.Average
Citations provided by BIP!Popularity provided by BIP!