Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/297299 
Year of Publication: 
2023
Series/Report no.: 
ECB Working Paper No. 2859
Publisher: 
European Central Bank (ECB), Frankfurt a. M.
Abstract: 
Using administrative data on mortgages issued in Italy between 2018 and 2019, this paper estimates loan demand elasticities to maturity and interest rate. We find that households are responsive to both contract terms: a 1% decrease in interest rate increases the average loan size by 0.22% whereas a commensurable increase in maturity increases loan demand by 0.30%. This evidence suggests that credit constraints are relevant in this market. Things change substantially when moving along the distribution of contract maturities: short term borrowers are unresponsive to their contract length while maturity elasticities are higher for long term borrowers.
Subjects: 
mortgage
household finance
credit demand
maturity
JEL: 
D12
D14
D15
G11
G51
Persistent Identifier of the first edition: 
ISBN: 
978-92-899-6224-7
Document Type: 
Working Paper

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