Something will turn up? Financial over-optimism and mortgage arrears
AbstractThis paper investigates the association between unrealised financial expectations (over-optimism) and subsequent mortgage repayment difficulties, using British longitudinal data. Evidence is provided that an increased probability of mortgage payment difficulties post committal is associated with over-optimism prior to new mortgage advances.
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Bibliographic InfoArticle provided by Elsevier in its journal Economics Letters.
Volume (Year): 117 (2012)
Issue (Month): 1 ()
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Web page: http://www.elsevier.com/locate/ecolet
Financial optimism; Expectations; Mortgage arrears;
Find related papers by JEL classification:
- D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
- D14 - Microeconomics - - Household Behavior - - - Personal Finance
- G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
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