Mortgages and Financial Expectations: A Household Level Analysis
AbstractWe contribute to the literature on household mortgage debt by exploring one particular influence on mortgage debt at the household level, namely the financial expectations of the individuals within the household. Our theoretical model predicts a positive association between the quantity of mortgage debt and optimistic financial expectations. Our empirical findings based on household level data provide convincing support for our theoretical priors in that optimistic financial expectations are positively associated with the level of outstanding mortgage debt.
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Bibliographic InfoPaper provided by Department of Economics, University of Leicester in its series Discussion Papers in Economics with number 05/9.
Date of creation: Apr 2005
Date of revision: Dec 2006
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Postal: Department of Economics University of Leicester, University Road. Leicester. LE1 7RH. UK
Phone: +44 (0)116 252 2887
Fax: +44 (0)116 252 2908
Web page: http://www2.le.ac.uk/departments/economics
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Other versions of this item:
- Sarah Brown & Gaia Garino & Karl Taylor, 2008. "Mortgages and Financial Expectations: A Household-Level Analysis," Southern Economic Journal, Southern Economic Association, vol. 74(3), pages 857-878, January.
- D18 - Microeconomics - - Household Behavior - - - Consumer Protection
- D84 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Expectations; Speculations
- D91 - Microeconomics - - Intertemporal Choice and Growth - - - Intertemporal Consumer Choice; Life Cycle Models and Saving
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- Sarah Brown & Karl Taylor, 2008. "Expectations, Reservation Wages And Employment: Evidence From British Panel Data," Working Papers 2008007, The University of Sheffield, Department of Economics, revised May 2008.
- Brown, Sarah & Taylor, Karl, 2011.
"Household Finances and the 'Big Five' Personality Traits,"
IZA Discussion Papers
6191, Institute for the Study of Labor (IZA).
- Sarah Brown & Karl Taylor, 2011. "Household finances and the 'Big Five' personality traits," Working Papers 2011025, The University of Sheffield, Department of Economics.
- Sarah Brown & John Sessions & Karl Taylor, 2004.
"What Will I Be When I Grow Up? An Analysis of Childhood Expectations and Career Outcomes,"
Discussion Papers in Economics
05/2, Department of Economics, University of Leicester.
- Brown, Sarah & Ortiz-Nuñez, Aurora & Taylor, Karl, 2011. "What will I be when I grow up? An analysis of childhood expectations and career outcomes," Economics of Education Review, Elsevier, vol. 30(3), pages 493-506, June.
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