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The authors empirically analyze the price-setting behaviour of the major Canadian banks in the residential mortgage … market over the period 19912007. They use weekly posted prices of the major mortgage providers to study the degree of … competition in mortgage price setting. Their results suggest that the residential mortgage market is imperfectly competitive. They …
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emerge when credit-constrained mortgage borrowers expect that future house prices will rise and this expectation is neither … amplify housing-market boom-bust cycles by encouraging speculative housing investments by mortgage borrowers during housing …
Persistent link: https://www.econbiz.de/10003852849
Using Bayesian methods, we estimate a small open economy model in which consumers face limits to credit determined by the value of their housing stock. The purpose of this paper is to quantify the role of collateralized household debt in the Canadian business cycle. Our findings show that the...
Persistent link: https://www.econbiz.de/10003933334