Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/53930
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dc.contributor.authorAllen, Jasonen_US
dc.contributor.authorClark, Roberten_US
dc.contributor.authorHoude, Jean-Françoisen_US
dc.date.accessioned2011-02-04en_US
dc.date.accessioned2011-12-15T12:58:21Z-
dc.date.available2011-12-15T12:58:21Z-
dc.date.issued2011en_US
dc.identifier.urihttp://hdl.handle.net/10419/53930-
dc.description.abstractThis paper studies discounting in mortgage markets. Using transaction-level data on Canadian mortgages, we document that over time there's been an increase in the average discount, along with substantial dispersion. The standard explanation for dispersion in credit markets is that lenders engage in risk-based pricing. Our setting is unique since contracts are guaranteed by government-backed insurance, meaning risk cannot be the main driver of dispersion. We find that mortgage rates depend on individual, contractual, and shopping market characteristics. There is also an important amount of unobserved heterogeneity in rates, which could be attributed to search costs.en_US
dc.language.isoengen_US
dc.publisher|aBank of Canada |cOttawaen_US
dc.relation.ispartofseries|aBank of Canada Working Paper |x2011,3en_US
dc.subject.jelD4en_US
dc.subject.jelG21en_US
dc.subject.jelL0en_US
dc.subject.ddc330en_US
dc.subject.keywordFinancial institutionsen_US
dc.subject.keywordFinancial servicesen_US
dc.subject.stwFinanzmarkten_US
dc.subject.stwHypotheken_US
dc.subject.stwInformationskostenen_US
dc.subject.stwDiskontpolitiken_US
dc.subject.stwKanadaen_US
dc.titleDiscounting in mortgage marketsen_US
dc.typeWorking Paperen_US
dc.identifier.ppn64528078Xen_US
dc.rightshttp://www.econstor.eu/dspace/Nutzungsbedingungenen_US

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