Mortgages and Financial Expectations: A Household Level Analysis

Sarah Brown (), Gaia Garino and Karl Taylor

No 05/9, Discussion Papers in Economics from Division of Economics, School of Business, University of Leicester

Abstract: We contribute to the literature on household mortgage debt by exploring one particular influence on mortgage debt at the household level, namely the financial expectations of the individuals within the household. Our theoretical model predicts a positive association between the quantity of mortgage debt and optimistic financial expectations. Our empirical findings based on household level data provide convincing support for our theoretical priors in that optimistic financial expectations are positively associated with the level of outstanding mortgage debt.

Keywords: Financial Expectations; Housing Tenure; Inter-temporal Consumption; Mortgage Debt (search for similar items in EconPapers)
JEL-codes: D18 D84 D91 (search for similar items in EconPapers)
Date: 2005-04, Revised 2006-12
New Economics Papers: this item is included in nep-ure
References: Add references at CitEc
Citations: View citations in EconPapers (6)

Downloads: (external link)
https://www.le.ac.uk/economics/research/RePEc/lec/leecon/dp05-9.pdf (application/pdf)

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:lec:leecon:05/9

Ordering information: This working paper can be ordered from
https://www2.le.ac.u ... -1/discussion-papers

Access Statistics for this paper

More papers in Discussion Papers in Economics from Division of Economics, School of Business, University of Leicester School of Business, University of Leicester, University Road. Leicester. LE1 7RH. UK Provider-Homepage: https://le.ac.uk/school-of-business. Contact information at EDIRC.
Bibliographic data for series maintained by Abbie Sleath ().