|
EconStor >
Forschungsinstitut zur Zukunft der Arbeit (IZA), Bonn >
IZA Discussion Papers, Forschungsinstitut zur Zukunft der Arbeit (IZA) >
Please use this identifier to cite or link to this item:
http://hdl.handle.net/10419/20693
|
| | |
| Title: | | Income Volatility and Residential Mortgage Delinquency : Evidence from 12 EU Countries  |
| Authors: | | Diaz-Serrano, Luis |
| Issue Date: | | 2004 |
| Series/Report no.: | | IZA Discussion paper series 1396 |
| Abstract: | | We investigate the socio-economic determinants of mortgage delinquency in 12 EU countries and observe that income volatility significantly increases the mortgage delinquency risk. This pattern even holds for borrowers with higher-income profiles if volatility in income is high enough. From this result we can draw the following conclusions: i) mortgage protection insurance policies might be failing to cover those borrowers most in need; ii) the existence of credit market imperfections, and; iii) the inability for a number of borrowers most at income risk to accumulate precautionary savings in order to meet mortgage payments when shocks in income arise. |
| Subjects: | | income volatility mortgage delinquency mortgage insurance homeownership payment-to-income ratio credit market imperfections |
| JEL: | | J0 R0 D1 |
| Document Type: | | Working Paper |
| Appears in Collections: | | IZA Discussion Papers, Forschungsinstitut zur Zukunft der Arbeit (IZA)
|
| Files in This Item:
| |
| File |
Description |
Size | Format |
| dp1396.pdf | | 177.35 kB | Adobe PDF |
|
| No. of Downloads:
| |
| last Month |
last 3 Month |
total |
|
|
|
|
|
| |
| | |
Download bibliographical data as:
BibTeX
|
| |
Share on:http://hdl.handle.net/10419/20693
|
Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.
|