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RBA Glossary definition for financial institution

financial institution – A company whose primary function is to intermediate between lenders and borrowers in the economy.

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The Determinants of Mortgage Defaults in Australia – Evidence for the Double-trigger Hypothesis

22 Jul 2020 RDP 2020-03
Michelle Bergmann
banking, consumption, debt, financial markets, households, housing, income and wealth, insolvency.
https://www.rba.gov.au/publications/rdp/2020/2020-03.html

Results

22 Jul 2020 RDP 2020-03
Michelle Bergmann
the severity of the shock, to the extent that it is correlated with unobserved borrower characteristics such as age, security of employment, financial literacy and understanding of the legal system. ... Lower financial literacy may also be correlated
https://www.rba.gov.au/publications/rdp/2020/2020-03/results.html

Appendix B: Full Results

22 Jul 2020 RDP 2020-03
Michelle Bergmann
RDP 2020-03: The Determinants of Mortgage Defaults in Australia – Evidence for the Double-trigger Hypothesis Appendix B: Full Results. Michelle Bergmann. July 2020. Download the Paper 1,854. KB. Figure B1: Stage One Relative Hazard Ratios –
https://www.rba.gov.au/publications/rdp/2020/2020-03/appendix-b.html

The Determinants of Mortgage Defaults in Australia – Evidence for the Double-trigger Hypothesis

22 Jul 2020 RDP 2020-03
Michelle Bergmann
Michelle Bergmann. July 2020. 1.83. MB. 1. Introduction. Mortgage defaults can have huge personal and financial stability costs. ... how long they expect their financial difficulties to continue and how much they can afford to repay.
https://www.rba.gov.au/publications/rdp/2020/2020-03/full.html

Estimation Strategy

22 Jul 2020 RDP 2020-03
Michelle Bergmann
RDP 2020-03: The Determinants of Mortgage Defaults in Australia – Evidence for the Double-trigger Hypothesis 5. Estimation Strategy. Michelle Bergmann. July 2020. Download the Paper 1,854. KB. 5.1 A Two-stage Approach. The simplest version of the
https://www.rba.gov.au/publications/rdp/2020/2020-03/estimation-strategy.html

Conclusion and Policy Implications

22 Jul 2020 RDP 2020-03
Michelle Bergmann
default. Since unemployment spells and reductions to income appear to be the key macroeconomic drivers of arrears, the unemployment rate and net income should be considered key variables when evaluating financial
https://www.rba.gov.au/publications/rdp/2020/2020-03/conclusion-and-policy-implications.html

What Can Previous Research Tell Us?

22 Jul 2020 RDP 2020-03
Michelle Bergmann
For example, in the ‘frictionless option model’, borrowers rationally choose to default to maximise their financial wealth when the value of their mortgage falls below its cost (Foster and Van Order ... these papers are often estimated using data for
https://www.rba.gov.au/publications/rdp/2020/2020-03/what-can-previous-research-tell-us.html

Appendix A: Summary Statistics and Variable Definitions

22 Jul 2020 RDP 2020-03
Michelle Bergmann
RDP 2020-03: The Determinants of Mortgage Defaults in Australia – Evidence for the Double-trigger Hypothesis Appendix A: Summary Statistics and Variable Definitions. Michelle Bergmann. July 2020. Download the Paper 1,854. KB. Table A1: Summary
https://www.rba.gov.au/publications/rdp/2020/2020-03/appendix-a.html

The Determinants of Mortgage Defaults in Australia – Evidence for the Double-trigger Hypothesis

22 Jul 2020 RDP 2020-03
Michelle Bergmann
Research Discussion Paper – RDP 2020-03 The Determinants of Mortgage Defaults in Australia – Evidence for the Double-trigger Hypothesis. Michelle Bergmann. July 2020. 1,854. KB. I would like to thank Leon Berkelmans, James Bishop, Anthony Brassil
https://www.rba.gov.au/publications/rdp/2020/2020-03/sections.html

Appendix C: Robustness Checks – Multinomial Logit Models

22 Jul 2020 RDP 2020-03
Michelle Bergmann
RDP 2020-03: The Determinants of Mortgage Defaults in Australia – Evidence for the Double-trigger Hypothesis Appendix C: Robustness Checks – Multinomial Logit Models. Michelle Bergmann. July 2020. Download the Paper 1,854. KB. The first-stage
https://www.rba.gov.au/publications/rdp/2020/2020-03/appendix-c.html