Competition and interest rates in the Dutch mortgage market: an econometric analysis over 2004-2010
Triggered by evidence that the mortgage interest margins have risen since 2009, an econometric analysis is conducted to explain the interest rates in the Dutch mortgage market at the bank level ver 2004 – 2010. Controlling for the influence of costs, risks and also for some regulatory measures, we find statistically significant evidence that the degree of competition in the Dutch mortgage market (measured by C3 or HHI) affected the level of the mortgage interest rates. An increase in market concentration equal to the size of its standard deviation over the period of analysis raised the mortgage interest rate by approximately 0.10 to 0.20 percentage points. The impact of costs as well as risks appears to be about twice as large as the impact of market concentration.
|Date of creation:||May 2011|
|Contact details of provider:|| Postal: Postbus 16326, 2500 BH 's-Gravenhage|
Phone: (070) 330 33 30
Fax: (070) 330 33 70
Web page: http://www.nma.nl
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Humphrey David & Carbó Valverde Santiago & Maudos Villarroya Joaquín & Molyneux Philip, 2006.
"Cross-Country Comparisons of Competition and Pricing Power in European Banking,"
201036, Fundacion BBVA / BBVA Foundation.
- Carbó, Santiago & Humphrey, David & Maudos, Joaquín & Molyneux, Philip, 2009. "Cross-country comparisons of competition and pricing power in European banking," Journal of International Money and Finance, Elsevier, vol. 28(1), pages 115-134, February.
- Carbo, Santiago & Humphrey, David & Maudos, Joaquin & Molyneux, Philip, 2006. "Cross-Country Comparisons of Competition and Pricing Power in European Banking," MPRA Paper 15258, University Library of Munich, Germany, revised 2006.
- Santiago Carbó Valverde & David B. Humphrey & Joaquin Maudos & Philip Molyneux, 2006. "Cross-country comparisons of competition and pricing power in European banking," Proceedings 1107, Federal Reserve Bank of Chicago.
When requesting a correction, please mention this item's handle: RePEc:nco:wpaper:1114. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Robert Hempenius)
If references are entirely missing, you can add them using this form.