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European Mortgage Markets Versus Institutions

Author

Listed:
  • S. Belgin Akçay

    (Ankara University)

  • Begüm Şeren Güler

    (Financial and Social Policies Unit, Ministry of Foreign Affairs)

Abstract

This study aims to measure the institutional features of residential mortgage markets in the European Union (EU) countries. The institutional features of the mortgage markets include access to credit information, protection of creditor rights, and enforcement of contracts among others, and attributes that define the evolution and functioning of mortgage markets. Differences among these features lead to institutional variations in mortgage markets among countries. In this study, we measure the institutional features along four dimensions (financial, legal, openness and cultural), and compare them to a benchmark. To achieve this, composite indices (overall index and its sub-indices) are developed with the use of a factor analysis. The findings show that the institutional features of the EU mortgage markets are diverse; northern European countries and the United Kingdom (UK) take the lead with respect to the institutional environment of their mortgage markets and have markets with higher institutional quality than the others. That is, these countries have mortgage markets with a more efficient legal framework, more government transparency in policymaking, easier access to financial services and credit information, etc.

Suggested Citation

  • S. Belgin Akçay & Begüm Şeren Güler, 2021. "European Mortgage Markets Versus Institutions," International Real Estate Review, Global Social Science Institute, vol. 24(4), pages 577-612.
    • Handle: RePEc:ire:issued:v:24:n:04:2021:p:577-612
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    Mortgage Markets; European Union; Institutional Environment;
    All these keywords.

    JEL classification:

    • D02 - Microeconomics - - General - - - Institutions: Design, Formation, Operations, and Impact
    • D5 - Microeconomics - - General Equilibrium and Disequilibrium
    • E02 - Macroeconomics and Monetary Economics - - General - - - Institutions and the Macroeconomy
    • F15 - International Economics - - Trade - - - Economic Integration

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