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Mental accounting in the housing market
Working Paper from Norges Bank
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.
Keywords: salience; housing market; household finance; co-op; capital structure (search for similar items in EconPapers)
JEL-codes: D12 G14 G21 G32 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-cbe, nep-mic and nep-ure
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Downloads: (external link) http://www.norges-bank.no/en/about/published/publi ... pers/2010/wp-201020/
Related works: Working Paper: Mental Accounting in the Housing Market (2010) Working Paper: Mental Accounting in the Housing Market (2009) Working Paper: Mental accounting in the housing market (2009) This item may be available elsewhere in EconPapers: Search for items with the same title.
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Persistent link: http://EconPapers.repec.org/RePEc:bno:worpap:2010_20
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