The Influence of Macro factors On Residential Mortgage In Italy

Umberto Filotto (), Claudio Giannotti (), Gianluca Mattarocci and Xenia Scimone ()
Additional contact information
Umberto Filotto: Department Management and Law, Faculty of Economics, University of Tor Vergata, Rome, 00133, Italy
Claudio Giannotti: Department Management and Law, Faculty of Economics, University LUMSA, Rome, 00192, Italy
Xenia Scimone: Department Management and Law, Faculty of Economics, University of Tor Vergata, Rome, 00133, Italy

International Journal of Business Research and Management (IJBRM), 2021, vol. 12, issue 3, 103-115

Abstract: This paper examines the role of macro-economic variables, including informal sector, on the growth of the mortgage market in Italy, from 1999 to 2019. We start testing normality, correlation (Pearson) and multicollinearity, then we apply theoretical benchmark model following the approach proposed by Wichura (2006) using a linear regression model. Based on the main findings of this study we show that there a positive and potentially high correlation between residential mortgage and informal sector. In particular, we find that a unit increase in Percentage informal sector employment will cause an increase in residential mortgage. May be counterintuitive as the informal sector magnitude should represent a weaker access to credit for borrowers; nevertheless it may also be the case that informal sector increase anticipate GDP growth signalling a subsequent positive economic downturn. Thus, financial institutions will increase residential mortgage due to the informal sector growth signalling a positive economic trend. This work may help them suggesting how to include informal sector dynamics into residential mortgage pricing, as well as policymakers to read residential mortgage market dynamics and derive informal sector insights.

Keywords: Italy; Residential Mortgage; Economic Factors; Informal Sector. (search for similar items in EconPapers)
JEL-codes: M0 (search for similar items in EconPapers)
Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://www.cscjournals.org/manuscript/Journals/IJ ... Issue3/IJBRM-300.pdf (application/pdf)
https://www.cscjournals.org/library/manuscriptinfo.php?mc=IJBRM-300 (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:aml:intbrm:v:12:y:2021:i:3:p:103-115

Access Statistics for this article

International Journal of Business Research and Management (IJBRM) is currently edited by Dr. Mattei Cristofaro

More articles in International Journal of Business Research and Management (IJBRM) from Computer Science Journals (CSC Journals)
Bibliographic data for series maintained by Nabeel Tahir ().