IDEAS home Printed from https://ideas.repec.org/a/taf/rjerxx/v42y2020i2p183-205.html
   My bibliography  Save this article

Environmental and Security Risk Factors behind Mortgage Arrears in Israel

Author

Listed:
  • Yosi Borochov
  • Boris A. Portnov
  • Nahum Biger

Abstract

If a mortgage borrower misses three or more payments, the loan moves into the mortgage arrears (MA) category. This study examines MA events in Israel from 2010 to 2016, focusing on the effect of several environmental and security risk factors, including air pollution, proximity to the Lebanon-Syria and Gaza Strip borders, and location outside the 1949 Armistice border (Green Line). The analysis reveals statistically significant associations between MA incidence and most of the environmental variables analyzed. We conjecture that these associations reflect the fact that prolonged exposure to air pollution may elevate morbidity and weaken the ability of borrowers to make regular loan repayments. In addition, security risks may limit the attractiveness of high-risk areas to developers and investors, thus restricting employment opportunities locally available. Air pollution and security risks may also decrease the asset value by lowering housing demand due to out-migration of more affluent residents. The present analysis is a pioneer individual level study that investigates the effect of air pollution and proximity to conflict zones on MA incidence.

Suggested Citation

  • Yosi Borochov & Boris A. Portnov & Nahum Biger, 2020. "Environmental and Security Risk Factors behind Mortgage Arrears in Israel," Journal of Real Estate Research, Taylor & Francis Journals, vol. 42(2), pages 183-205, September.
    • Handle: RePEc:taf:rjerxx:v:42:y:2020:i:2:p:183-205
    DOI: 10.1080/08965803.2020.1806616
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1080/08965803.2020.1806616
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1080/08965803.2020.1806616?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:taf:rjerxx:v:42:y:2020:i:2:p:183-205. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/rjer20 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.