New Findings from Erasmus University Medical Center in the Area of Real Estate Economics Reported (Mortgage Insurance Adoption in the Netherlands)

2019 NOV 28 (NewsRx) -- By a News Reporter-Staff News Editor at Economics Daily Report -- New research on Economics - Real Estate Economics is the subject of a report. According to news reporting originating in Rotterdam, Netherlands, by NewsRx journalists, research stated, “Individuals tend to underinsure on low probability, high consequence risks. Using a survey data set from a unique institutional context, we provide an assessment of the underinsurance puzzle by studying mortgage insurance adoption among Dutch homeowners.”

The news reporters obtained a quote from the research from Erasmus University Medical Center, “The results indicate that the demand for mortgage insurance is affected by risk exposure, type of mortgage lender, and the involvement of financial advisors. We document that wealthier and younger mortgagors are more likely to insure. However, locus of control, house price expectations, and precautionary savings are not related to insurance demand.”

According to the news reporters, the research concluded: “Finally, we find evidence that borrower (over)confidence negatively affects the likelihood that insurance is bought.”

For more information on this research see: Mortgage Insurance Adoption in the Netherlands. Real Estate Economics, 2019;47(4):977-1012. Real Estate Economics can be contacted at: Wiley, 111 River St, Hoboken 07030-5774, NJ, USA. (Wiley-Blackwell - http://www.wiley.com/; Real Estate Economics - http://onlinelibrary.wiley.com/journal/10.1111/(ISSN)1540-6229)

Our news correspondents report that additional information may be obtained by contacting R.H.G.M. Cox, Erasmus University Medical Center, Erasmus School of Economics, Pob 1738, Nl-3000 Dr Rotterdam, Netherlands.

The direct object identifier (DOI) for that additional information is: https://doi.org/10.1111/1540-6229.12157. This DOI is a link to an online electronic document that is either free or for purchase, and can be your direct source for a journal article and its citation.

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