Steffen Andersen|John Y. Campbell|Kasper Meisner Nielsen|Tarun Ramadorai
Sources of Inaction in Household Finance: Evidence from the Danish Mortgage Market
Copenhagen Business School|Harvard University|Copenhagen Business School|Center for Economic and Policy Research|Imperial College London
build empirical model attribute delays mortgage refinancing psychological costs inhibiting refinancing incentives sufficiently strong behavior potentially attributable informationgathering costs lowering probability household refinancing per unit time incentive estimate model administrative panel data denmark mortgage refinancing without cashout unconstrained middleaged wealthy households act high psychological refinancing costs older poorer lesseducated households refinance lower probability irrespective incentives thereby achieving lower savings use model understand frictions mortgage channel monetary policy transmission jel e52 g21 g51 r31