The Bank's Market Power and the Interest Rate Elasticity of Demand for Housing: An Econometric Study of Discrimination on Frenc

Robert Gary-Bobo () and Sophie Larribeau ()

No 3745, CEPR Discussion Papers from C.E.P.R. Discussion Papers

Abstract: We specify several variants of a structural econometric model explaining mortgage interest rates and loan sizes simultaneously. The models are estimated by simultaneous equation methods with a sample of loan files originated from a French mortgage lender. They yield estimates of the interest-rate elasticity of the demand for housing. Different occupational status groups happen to have different values of structural preference parameters. We show how these differences translate into differential treatment of socio-economic groups by the banker.

Keywords: Mortage lending; Discrimination; market power (search for similar items in EconPapers)
JEL-codes: D40 G21 L13 R21 (search for similar items in EconPapers)
Date: 2003-02
New Economics Papers: this item is included in nep-cfn and nep-geo
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (6)

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