- Appendix B. The institutional framework Credit markets39 As illustrated by Casolaro et al. (2006), the Italian loan market has three distinctive features. First, it is small with respect to that of other European counties: In 2006, the ratio between mortgages and the gross domestic product was less than 20% in Italy, and around 80% in the United Kingdom. This evidence is conïrmed by data in Table 4 that show a low mortgage take-up rate and a low incidence of debt on house values. Second, the household loan market has been growing very quickly during the last years, with regard to both consumer credit and mortgages (e.g., the ratio between mortgages and GDP rose from less than 4% in 1984 to 13% in 2003 (Casolaro et al., 2006)).
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- Table 1: Incidence of the dwelling over total net wealth Own. rate Mean Std. Dev. All 66.22% 55.92% 1.28 Aged 25-50 59.55% 54.95% 1.90 Owners 84.85% 1.5 Owners 25-50 92.63% 2.38 Source: elaboration on SHIW data (1993-2002).
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- Table 2: Incidence of the expenditure for housing services on total consumptiona on incomeb Mean Std. Dev. Mean Std. Dev. All 25.01% 0.12 24.88 % 0.17 Renters 19.70% 0.11 18.63 % 0.14 Aged 25-50 24.29% 0.11 23.10 % 0.15 Renters 25-50 19.93% 0.11 18.87 % 0.14 Source: elaboration on SHIW data (1993-2002). Notes: a: ratio between rental payments and non durable consumption (included rent). Household evaluation of potential rental payment at market price is used to measure housing consumption by homeowners. b: ratio between rental payments and annual household labor income.
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- Table 6: Financial indexes Variable Mean Std. Dev. Interest rate on debt overall 0.1093 0.0344 between 0.0096 within 0.0331 Interest rate on deposits overall 0.0467 0.0250 between 0.0016 within 0.0250 Spread overall 0.0626 0.0134 between 0.0103 within 0.0088 Source: elaboration on Bank of Italy data. Years 1993-2002. Notes: 100 observations (20 regions observed 5 times).
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