Naslov
THE IMPACT OF EURO ADOPTION ON MORTGAGE RATES: WHAT CAN CROATIA EXPECT?

Autori
Đukić, Mirko ; Walker, Kevin ; Samardžija, Jasminka

Vrsta, podvrsta i kategorija rada
Radovi u zbornicima skupova, cjeloviti rad (in extenso), znanstveni

Izvornik
Conference proceedings 14th Annual Conference of the EuroMed Academy of Business Contemporary Business Concepts and Strategies in the new Era / Demetris Vrontis, Yaakov Weber, Evangelos Tsoukatos - Greece : EuroMed Press, 2021, 241-256

ISBN
978-9963-711-90-1

Skup
14th Annual Conference of the EuroMed Academy of Business Contemporary Business Concepts and Strategies in the new Era

Mjesto i datum
Online ; Pariz, Francuska, 22.09.2021. - 24.09.2021

Vrsta sudjelovanja
Predavanje

Vrsta recenzije
Međunarodna recenzija

Ključne riječi
Eurozone ; mortgage rates ; interest rates ; convergence ; Croatia ; Euro

Sažetak
The purpose of the paper is to study the effects of euro adoption experienced by Eurozone countries on retail interest rates before and after adoption. While most of the studies in this field have focused on inter-bank rates, this research studies mortgage rates, thereby seeking to provide insight to both households and the banking sector as to how euro adoption might impact mortgage rates. Specifically, this study researched whether or not mortgage rates converged (in terms of levels and tracking) in five year periods before and after adoption in Estonia, Latvia, Lithuania, Slovenia, and Slovakia. Ultimately, the intention of this effort is to determine what could happen to Croatian mortgage rates when Croatia adopts the euro. The results were inconclusive in that no consistent patterns were discerned among the studied countries over the identified time periods. The strongest instance of convergence (four of the five countries) occurred in the pre-adoption period when considering whether adopting countries’ mortgage rates tracked Eurozone averages. Overall, however, the findings showed that the five observed countries experienced different degrees of convergence and sometimes even divergence of mortgage rates. Hence, without identifying a pattern of behavior among mortgage rates, an estimate for the Croatian case could not be made

Izvorni jezik
Engleski

Znanstvena područja
Ekonomija

POVEZANOST RADA