I am a Postdoctoral Researcher at the Department of Economics at Lund University and Knut Wicksell Centre for Financial Studies. My main research area is in household finance, specifically in consumption, housing and mortgages. I also do work in alternative work arrangements and in the effect of social networks on investment behavior.
I recently received a two-year grant from Jan Wallanders och Tom Hedelius foundation to study the effect of amortization requirements on borrowing in Sweden and whether more financial choice has led to higher wealth inequality.
Main Research Field
Household Finance, Housing Markets, Household Consumption, Mortgages Choice
Financial Innovation, House Prices, and Consumption
We show that interest-only mortgages had a large impact consumption expenditure using a mortgage market reform in 2003 in Denmark. We show theoretically that IO mortgages are more valuable in areas with high house price levels, and use a pre-reform measure of exposure to the reform to show that interest-only mortgages had a sizeable impact on consumption expenditure. Our results also show how financial innovation and changing interest-rates can bias the estimation of housing wealth effects.
The Impact of IO Mortgages on Affordability
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.