Optimal screening capacity and perceived risk of mortgage banks across countries

Arie Jacobi and Joseph Tzur

Emerging Markets Review, 2019, vol. 41, issue C

Abstract: In this paper, we investigate the optimal combination of the levels of perceived risk and screening capacity that maximizes the fair value of a mortgage bank, while considering the probability of bank failure and the distribution borrower's wealth across emerging and developed countries. This is a novel contribution to the current literature that does not address that optimal combination and its dependency on the distribution borrower's wealth.

Keywords: Mortgage; Perceived risk; Wealth distribution; Screening capacity; Power law distribution; GINI index (search for similar items in EconPapers)
JEL-codes: D31 G21 G28 (search for similar items in EconPapers)
Date: 2019
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Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:ememar:v:41:y:2019:i:c:s1566014119302511

DOI: 10.1016/j.ememar.2019.100654

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