Mental accounting in the housing market

Arbeitspapier

We report evidence that salience may have economically significant effects on homeowners' borrowing behavior, through a bias in favour of less salient but more costly loans. We outline a simple model in which some consumers are biased. Under plausible assumptions, the bias may affect prices in equilibrium. Market data support the predictions of the model.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: SSE/EFI Working Paper Series in Economics and Finance ; No. 718

Classification and Topics

• Classification: Wirtschaft ; Consumer Economics: Empirical Analysis ; Information and Market Efficiency; Event Studies; Insider Trading ; Banks; Depository Institutions; Micro Finance Institutions; Mortgages ; Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill
• Subject: salience ; housing market ; household finance ; co-op ; capital structure ; Konsumentenverhalten ; Immobilienfinanzierung ; Kapitalstruktur ; Haushaltsökonomik ; Schweden

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Almenberg, Johan ; Karapetyan, Artashes
• Event: Veröffentlichung
• (who): Stockholm School of Economics, The Economic Research Institute (EFI)
• (where): Stockholm
• (when): 2009

Further information

• Handle: http://hdl.handle.net/10419/56316
• Last update: 10.03.2025, 11:43 AM CET