Brown Bag Seminar: Fabian Brunåker

Brown Bag seminars are organized by the doctoral association at the Department of Economics. The seminar is a space where doctoral students can present their ideas at an early stage of the research process.

Abstract: I find that households do not optimize their borrowing behaviour in the housing market under different forms of capital structures. I estimate a low capitalisation of 10% of hidden debt in the coop segment of the housing market, similar to previous studies. In addition, I estimate the cost of non-capitalisation to be of magnitude 14% of market value and 30% of transaction prices. Using a model of household debt financing I find that the price discrepancy can be explained by behavioural inattention, with households attention to coop debt costs estimated to be TBD%, by preference for coop ownership through a premium of TBD% for shared responsibility, and credit constraints.