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Housing Finance Across Countries: New Data and Analysis

60 Pages Posted: 6 Oct 2013  

Anton I. Badev

Board of Governors of the Federal Reserve System

Thorsten Beck

City University London - Sir John Cass Business School; Tilburg University - European Banking Center, CentER

Ligia Vado

World Bank

Simon C. Walley

World Bank

Multiple version iconThere are 2 versions of this paper

Date Written: June 4, 2013

Abstract

This paper presents new data on the depth and penetration of mortgage markets across countries. We find a large variation across both dimensions of mortgage market development, both across countries but also – in terms of depth – within countries. Mortgage markets seem to develop only at relatively high levels of GDP per capita. Policies associated with financial system development are also associated with mortgage market development, including price stability and the efficiency of contractual and information frameworks. We find that the development of the insurance sector and the stock market, sources of long-term funding, is strongly associated with mortgage market development, while government subsidies and support are not. A benchmarking exercise compares the actual values of mortgage market development to values predicted by structural country factors and shows a large variation across countries and over time in the gap between predicted and actual values, related to specific policies but also mortgage boom and bust cycles.

Keywords: Mortgage Finance, Benchmarking, Government Policy, Regulation

JEL Classification: G21, G28

Suggested Citation

Badev, Anton I. and Beck, Thorsten and Vado, Ligia and Walley, Simon C., Housing Finance Across Countries: New Data and Analysis (June 4, 2013). Available at SSRN: https://ssrn.com/abstract=2336126 or http://dx.doi.org/10.2139/ssrn.2336126

Anton I. Badev

Board of Governors of the Federal Reserve System ( email )

20th Street and Constitution Avenue NW
Washington, DC 20551
United States

Thorsten Beck (Contact Author)

City University London - Sir John Cass Business School ( email )

106 Bunhill Row
London, EC1Y 8TZ
United Kingdom

Tilburg University - European Banking Center, CentER ( email )

PO Box 90153
Tilburg, 5000 LE
Netherlands

Ligia Vado

World Bank ( email )

1818 H Street, NW
Washington, DC 20433
United States

Simon C. Walley

World Bank ( email )

1818 H Street, NW
Washington, DC 20433
United States

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