Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/111197
Authors: 
Basten, Christoph
Koch, Cathérine
Year of Publication: 
2014
Series/Report no.: 
Working Paper Series, University of Zurich, Department of Economics 140
Abstract: 
We identify the causal effect of house prices on mortgage demand and supply in Switzerland by exploiting exogenous shocks to immigration and thereby to house prices. Detailed micro data allow us to observe multiple offers for each mortgage request. We find a 1% increase in house prices to raise the requested mortgage amount by 0.52%. Due to positive feedback effects, the entire partial correlation is 0.78%. While we find higher house prices to increase mortgage demand, they induce banks to make fewer offers and charge higher rates, especially later in the boom and especially for highly leveraged households.
Subjects: 
House Prices
Mortgage Demand
Mortgage Supply
Instrumental Variables
JEL: 
D14
G21
J61
R21
Persistent Identifier of the first edition: 
Document Type: 
Working Paper

Files in This Item:
File
Size
675.58 kB





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.