Mortgage Risks, Debt Literacy and Financial Advice

Ooijen, Raun van; Rooij, Maarten van

doi:10.2139/ssrn.2530494

Cited by 14 publications

(26 citation statements)

References 33 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…Our results are in contrast to studies using Dutch mortgage data, who find a positive relation between financial literacy and AMP holding (van Ooijen & van Rooij, 2014;Cox et al, 2015). But, as we discussed before, the Dutch mortgage market is very different to the UK's: AMPs in the Netherlands bring tax relief, and it may require financial sophistication to realize this potential advantage.…”

Section: Does 'Extrapolation Bias' Explain Mortgage Choices?contrasting

confidence: 99%

See 1 more Smart Citation

Financial literacy, present bias and alternative mortgage products

Gathergood

Weber

2017

Journal of Banking & Finance

View full text Add to dashboard Cite

Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. Terms of use: Documents in

show abstract

Section: Does 'Extrapolation Bias' Explain Mortgage Choices?contrasting

confidence: 99%

“…For Dutch households, two recent studies have examined financial literacy and mortgage choices (van Ooijen & van Rooij, 2014;Cox et al, 2015). In the Dutch context, the characteristics of alternative mortgage products and mortgage holders are very different to the US or UK setting.…”

Section: Introductionmentioning

confidence: 99%

Financial literacy, present bias and alternative mortgage products

Gathergood

Weber

2017

Journal of Banking & Finance

View full text Add to dashboard Cite

show abstract

“…ANOVA results showed that there exists a significant (p-value = 0.000) difference in educational levels of those reading financial articles. This supports Van Ooijen and Van Rooij [26] who found that the financial literate consulted a large number of information sources such as financial magazines, newspapers and internet. Those who need the financial articles least therefore read them.…”

Section: Resultssupporting

confidence: 79%

“…Surprisingly, this performance was better compared with previous studies by Lusardi and Tufano [20] and Disney and Gathergood [12] where the scores were 35.9 % and 25.1% respectively using the same question. Yet it was overshadowed by performance of a similar question in a study by van Ooijen and van Rooij [26]; the score was 66.9%. It is clearly apparent that respondents who answered incorrectly displayed rudimentary understanding of the concept of interest accrual.…”

Section: Resultsmentioning

confidence: 89%

“…Yet another study by Zakaria, Jaafar & Marican [28] determined the relationship between financial behaviour and financial position of urban households in Malaysia used 916 questionnaires. While Van Ooijen and Van Rooij [26] in their study on mortgage risks; debt literacy and financial advice finally settled on sample of 459 households. ANOVA results showed that there exists a significant (p-value = 0.000) difference in educational levels of those reading financial articles.…”

Section: Resultsmentioning

confidence: 99%

See 1 more Smart Citation

Effect of Debt Knowledge on the Indebtedness of Employees in the Formal Sector in Kenya

Kariuki¹,

Fredrick²,

Mwangi³

2016

ujaf

View full text Add to dashboard Cite

The study sought to establish the relationship between debt knowledge and indebtedness in Kenya. Positivism paradigm was used in this study. The study adopted a cross sectional and correlational descriptive research design. The study targeted about 2.4 million employees in the formal sector. Three stage sampling was done, first, cluster sampling and then, stratified sampling and finally random sampling. The study used primary data collected by use of self-administered questionnaires. A pilot test of the questionnaire was conducted on 40 respondents to check its validity and reliability. 1000 questionnaires were circulated. Of the returned, 581 questionnaires were considered usable. Cronbach's alpha for likert type items was found reliable (over 0.7). Data analysis used IBM SPSS statistics 21 for descriptive and correlation analysis. Further, OLS Multiple regression models were used to examine the relationships between the independent variable and the dependent variable. The findings reveal that debt experience has a significant effect on indebtedness. Results also found that aggregated debt literacy only explain a mere 9.8 % of respondent's indebtedness. The study will help to buttress economic theories of borrowing. Further the government, policy makers, employers and scholars will benefit from the findings of the study. Future research should explore the effect of dimensions like debt attitude and financial socialization on indebtedness. Further, debt literacy for individuals in the informal sector need to be related to their indebtedness while the lenders' perspective need to be sought.

show abstract

A Capability Approach to Evaluating well-being and Equality in Housing: Clear Conceptual Difference but Unclear Practical Difference?

Kimhur

2022

Housing, Theory and Society

View full text Add to dashboard Cite

This study empirically examines the difference of the capability approach to evaluating well-being and equality in housing, with data from the Netherlands. Conventionally, well-being/inequality in housing have been evaluated by measures of economic/material means for housing or satisfaction. In theory, these evaluation approaches overlook some important normative concerns, and applying the capability approach -evaluating the capabilities to reside in ways a person values -can compensate for such weakness. However, its practical difference appears as yet contested. This study reviews the sources of such contesting views, and clarifies them by comparing the capability-oriented and conventional measures of housing deprivation in terms of their identification of deprived groups that welfare policies are supposed to address. The results showed that the overlap between the deprived groups was rather limited, revealing blind spots in the current welfare policies for housing and the informational benefits of capabilityoriented evaluation. This study adds implications for measurement methods.

show abstract

Mortgage Risks, Debt Literacy and Financial Advice

Abstract: Take-down policy If you believe that this document breaches copyright please contact us providing details, and we will remove access to the work immediately and investigate your claim.

Cited by 14 publications

References 33 publications

Financial literacy, present bias and alternative mortgage products

Financial literacy, present bias and alternative mortgage products

Effect of Debt Knowledge on the Indebtedness of Employees in the Formal Sector in Kenya

A Capability Approach to Evaluating well-being and Equality in Housing: Clear Conceptual Difference but Unclear Practical Difference?

Contact Info

Product

Resources

About