The income elasticity of mortgage loan demand

Q1 Economics, Econometrics and Finance

Financial Markets, Institutions and Instruments Pub Date : 2019-02-27 DOI:10.1111/fmii.12108

Manthos D. Delis, Iftekhar Hasan, Chris Tsoumas

引用次数: 1

Abstract

One explanation for the emergence of the housing market bubble and the subprime crisis is that increases in individuals’ income led to higher increases in the amount of mortgage loans demanded, especially for the middle class. This hypothesis translates to an increase in the income elasticity of mortgage loan demand before 2007. Using applicant-level data, we test this hypothesis and find that the income elasticity of mortgage loan demand in fact declines in the years before 2007, especially for the mid- and lower-middle income groups. Our finding implies that increases in house prices were not matched by increases in loan applicants’ income.

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抵押贷款需求的收入弹性

对房地产市场泡沫和次贷危机出现的一种解释是，个人收入的增加导致抵押贷款需求的增加，尤其是中产阶级。这一假设转化为2007年之前抵押贷款需求的收入弹性增加。使用申请人水平的数据，我们检验了这一假设，并发现抵押贷款需求的收入弹性实际上在2007年之前的几年里下降，特别是对于中低收入群体。我们的发现表明，房价的上涨与贷款申请人收入的增长并不匹配。

本文章由计算机程序翻译，如有差异，请以英文原文为准。

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来源期刊

Financial Markets, Institutions and Instruments Economics, Econometrics and Finance-Economics, Econometrics and Finance (all)

CiteScore

1.80

自引率

0.00%

发文量

期刊介绍： Financial Markets, Institutions and Instruments bridges the gap between the academic and professional finance communities. With contributions from leading academics, as well as practitioners from organizations such as the SEC and the Federal Reserve, the journal is equally relevant to both groups. Each issue is devoted to a single topic, which is examined in depth, and a special fifth issue is published annually highlighting the most significant developments in money and banking, derivative securities, corporate finance, and fixed-income securities.