Housing, Mortgages, and Self Control

Dnr:

SNIC 2017/7-8

Type:

SNAC Small

Principal Investigator:

Kathrin Schlafmann

Affiliation:

Stockholms universitet

Start Date:

2017-01-26

End Date:

2018-02-01

Primary Classification:

50201: Nationalekonomi

Webpage:

Allocation

Abstract

Using a quantitative theoretical framework this project analyzes how problems of self control influence housing and mortgage decisions. It therefore builds a heterogeneous agent life-cycle model of how consumers purchase houses and take out mortgages and shows how households who differ in their degree of self control differ in their behavior. It then implements two policy changes regarding mortgage contracts and shows the welfare effects of these changes on people with different degrees of self control.