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An anomaly in the pricing of bank non-interest mortgage charges

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  • Chao-shun Hung

Abstract

This paper uses a monopolistically competitive model to study the determinants of bank mortgage charges. The study shows that concentration and the loan-price ratio do not have significant effects on the bank mortgage charges. Significantly, the charges are found to be positively related to the number of banks and bank offices in a given market and inversely related to the market size or population. (JEL L130, G210) Copyright Springer 1999

Suggested Citation

  • Chao-shun Hung, 1999. "An anomaly in the pricing of bank non-interest mortgage charges," Journal of Economics and Finance, Springer;Academy of Economics and Finance, vol. 23(2), pages 162-169, June.
    • Handle: RePEc:spr:jecfin:v:23:y:1999:i:2:p:162-169
    DOI: 10.1007/BF02745950
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    References listed on IDEAS

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    1. Berger, Allen N & Hannan, Timothy H, 1989. "The Price-Concentration Relationship in Banking," The Review of Economics and Statistics, MIT Press, vol. 71(2), pages 291-299, May.
    2. Mark A. Satterthwaite, 1979. "Consumer Information, Equilibrium Industry Price, and the Number of Sellers," Bell Journal of Economics, The RAND Corporation, vol. 10(2), pages 483-502, Autumn.
    3. White, Halbert, 1980. "A Heteroskedasticity-Consistent Covariance Matrix Estimator and a Direct Test for Heteroskedasticity," Econometrica, Econometric Society, vol. 48(4), pages 817-838, May.
    4. Benston, George J & Hanweck, Gerald A & Humphrey, David B, 1982. "Scale Economies in Banking: A Restructuring and Reassessment," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 14(4), pages 435-456, November.
    5. Cebula, Richard J, 1991. "Federal Government Budget Deficits and Interest Rates: Reply," Public Finance = Finances publiques, , vol. 46(2), pages 331-334.
    6. Marlow, Michael L., 1982. "Bank structure and mortgage rates: Implications for interstate banking," Journal of Economics and Business, Elsevier, vol. 34(2), pages 135-142.
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    Cited by:

    1. Irfan Ahmed & Shahid Mahmood & Umar Farooq, 2012. "Determinant Attributes of Customer Choice of Banks, Supplying Mortgage Products," Journal of Economics and Behavioral Studies, AMH International, vol. 4(5), pages 287-296.

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