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I am a Postdoctoral Researcher at the Department of Economics at Lund University and Knut Wicksell Centre for Financial Studies. My research is in the intersection of finance and macroeconomics, where I use microdata to study consumption, housing and mortgages.

I recently received a two-year grant from Jan Wallanders och Tom Hedelius foundation to study how additional choice causes wealth inequality and to study the impact of macroprudential policies on household borrowing. I also do work in alternative work arrangements and in the effect of social networks on investment behaviour.

If you have any links that would be useful for PhD students or junior researchers, please let me know!

Contact information

claes.backman@nek.lu.se

Office: Alfa 1, room 4030, Department of Economics, Lund University

Recent Papers

Interest-Only Mortgages and Consumption Growth: Evidence from a Mortgage Market Reform

We use detailed household-level data from Denmark to investigate how the legalization of interest-only mortgage affected household borrowing and consumption. We first show that these products made up more than half of total mortgage debt in both the low and high end of the income and wealth distribution. Using an ex-ante measure of exposure motivated by theories of financial constraints, we estimate that the introduction of interest-only mortgages had a large impact on household consumption. Our findings highlight that financial innovation can have a large impact on borrowing, and that the impact is not limited to subprime or low-quality borrowers.


The Impact of IO Mortgages on Affordability

Accepted at Regional Science and Urban Economics

We show that the legalisation of interest-only (IO) mortgage had no impact on homeownership rates in Denmark. IO mortgages made up approximately 60 percent of outstanding mortgage debt, with similar shares across the age, wealth and income distribution. We argue that the mortgage reform led to an increase in purchasing power across all buyers, leading to no change in who purchased housing. Instead, house prices rose, negating any positive impact on affordability.

Higher consumption growth for treated households after IO mortgages introduced in 2003



No impact on homeownership rates after mortgage reform in 2003