Effects of a mortgage interest rate subsidy: evidence from Colombia
Government intervention in the construction sector as a way to boost the economy has been a constant in Colombia for the past 90 years. This paper explicitly tests the impact of the most recent of such interventions: a subsidy to the mortgage interest rate. Our results show that the subsidy boosted...
- Autores:
-
Hofstetter Gascón, Marc
Tovar Mora, Jorge Andrés
Urrutia Montoya, Miguel
- Tipo de recurso:
- Work document
- Fecha de publicación:
- 2011
- Institución:
- Universidad de los Andes
- Repositorio:
- Séneca: repositorio Uniandes
- Idioma:
- eng
- OAI Identifier:
- oai:repositorio.uniandes.edu.co:1992/8252
- Acceso en línea:
- http://hdl.handle.net/1992/8252
- Palabra clave:
- Mortgage loans
Mortgage interest rate subsid
History of mortgage loans in Colombia
Hipotecas - Investigaciones - Colombia
Hipotecas - Historia - Colombia
Subsidios para vivienda - Investigaciones - Colombia
N96, R21, R28
- Rights
- openAccess
- License
- http://creativecommons.org/licenses/by-nc-nd/4.0/
| Summary: | Government intervention in the construction sector as a way to boost the economy has been a constant in Colombia for the past 90 years. This paper explicitly tests the impact of the most recent of such interventions: a subsidy to the mortgage interest rate. Our results show that the subsidy boosted mortgage loans by around 38 percent. However, we also find that real interest rates went up by 1.09 percent, i.e., there has been an incomplete pass-through of the subsidy to the consumer. We estimate the pass-through of such intervention to be in the range of 65 percent to 74 percent. |
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