The Mortgage Illusion

Homebuyers compare the monthly rental payment and the monthly installment of a mortgage when deciding to buy a house. They are more likely to buy a house if the mortgage monthly installment is lower than the monthly rental payment. Our results are robust to ownership bias and homebuyers’ budget constraints.


Nelson Camanho and Daniel Fernandes (2017) ,"The Mortgage Illusion", in NA - Advances in Consumer Research Volume 45, eds. Ayelet Gneezy, Vladas Griskevicius, and Patti Williams, Duluth, MN : Association for Consumer Research, Pages: 547-548.


Nelson Camanho, Catholic University of Portugal, Portugal
Daniel Fernandes, Catholic University of Portugal, Portugal


NA - Advances in Consumer Research Volume 45 | 2017

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