Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/56316
Authors: 
Almenberg, Johan
Karapetyan, Artashes
Year of Publication: 
2009
Series/Report no.: 
SSE/EFI Working Paper Series in Economics and Finance 718
Abstract: 
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.
Subjects: 
salience
housing market
household finance
co-op
capital structure
JEL: 
D12
G14
G21
G32
Document Type: 
Working Paper

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