The cost of steering in financial markets: Evidence from the mortgage market

• 成果类型: Article
• 署名作者: Guiso, Luigi; Pozzi, Andrea; Tsoy, Anton; Gambacorta, Leonardo; Mistrulli, Paolo Emilio
• 署名单位: University of Toronto; Bank for International Settlements (BIS); Centre for Economic Policy Research - UK; European Central Bank; Bank of Italy
• 刊物名称: JOURNAL OF FINANCIAL ECONOMICS
• ISSN/ISSBN: 0304-405X
• DOI: 10.1016/j.jfineco.2021.05.013
• 发表日期: 2022
• 页码: 1209-1226
• 关键词: Steering; FINANCIAL ADVICE; Mortgage market; Consumer protection

摘要

We build a model of the mortgage market in which banks attain their optimal mortgage portfolio by setting rates and steering customers. Sophisticated households know which mortgage type is best for them; naive households are susceptible to banks' steering. Using data on the universe of Italian mortgages, we estimate the model and quantify the welfare implications of steering. The average cost of the distortion is equivalent to 16% of the an-nual mortgage payment. A financial literacy campaign is beneficial for naive households, but hurts sophisticated ones. Since steering also conveys information about mortgages, re-stricting steering might result in significant welfare losses. (c) 2021 Elsevier B.V. All rights reserved.