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dc.titleEffects of a Mortgage Interest Rate Subsidy: Evidence from Colombia
dc.contributor.authorHofstetter, Marc
dc.contributor.authorTovar, Jorge
dc.contributor.authorUrrutia, Miguel
dc.contributor.orgunitDepartment of Research and Chief Economist
dc.coverageColombia
dc.date.available2011-08-23T00:00:00
dc.date.issue2011-05-01T00:00:00
dc.description.abstractGovernment intervention in the construction sector as a way to boost the economy has been a constant in Colombia for the past 90 years. This paper explicitly tests the impact of the most recent of such interventions: a subsidy to the mortgage interest rate. The results show that the subsidy boosted mortgage loans by around 38 percent. However, it is also found that real interest rates went up by 09 percent, i.e., there has been an incomplete pass-through of the subsidy to the consumer. The pass-through of this instance of intervention is estimated to be in the range of 65 percent to 74 percent.
dc.format.extent45
dc.identifier.doihttp://dx.doi.org/10.18235/0011206
dc.identifier.urlhttps://publications.iadb.org/publications/english/document/Effects-of-a-Mortgage-Interest-Rate-Subsidy-Evidence-from-Colombia.pdf
dc.language.isoen
dc.mediumAdobe PDF
dc.publisherInter-American Development Bank
dc.subjectHousing
dc.subjectFiscal Policy
dc.subject.jelcodeN96 - Latin America • Caribbean
dc.subject.jelcodeR21 - Housing Demand
dc.subject.jelcodeR28 - Government Policy
dc.subject.keywordsIDB-WP-257, Mortgage loans, Mortgage interest rate subsidy, History of mortgage loans in Colombia
idb.identifier.pubnumberWorking Papers
idb.operationRG-K1125
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