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An anomaly in the pricing of bank non-interest mortgage charges

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Abstract

This paper uses a monopolistically competitive model to study the determinants of bank mortgage charges. The study shows that concentration and the loan-price ratio do not have significant effects on the bank mortgage charges. Significantly, the charges are found to be positively related to the number of banks and bank offices in a given market and inversely related to the market size or population. (JEL L130, G210)

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Authors and Affiliations

  1. Department of Economics, Florida Atlantic University, 777 Glades Road, P.O. Box 3091, 33431, Boca Raton, FL

    Chao-shun Hung

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  1. Chao-shun Hung
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Hung, Cs. An anomaly in the pricing of bank non-interest mortgage charges. J Econ Finan 23, 162–169 (1999). https://doi.org/10.1007/BF02745950

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  • DOI: https://doi.org/10.1007/BF02745950

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