Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/209998
Authors: 
Almenberg, Johan
Karapetyan, Artashes
Year of Publication: 
2011
Series/Report no.: 
Working Paper No. 2011/22
Publisher: 
Norges Bank, Oslo
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. Survey evidence corroborates the existence of such a bias. We outline a simple model in which some consumers are biased and show that under plausible assumptions this affects prices in equilibrium. Market data support the predictions of the model.
Subjects: 
salience
debt
housing market
co-op
capital structure
JEL: 
D12
G14
G21
G32
Persistent Identifier of the first edition: 
ISBN: 
978-82-7553-645-5
Creative Commons License: 
https://creativecommons.org/licenses/by-nc-nd/4.0/deed.no
Document Type: 
Working Paper
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