Pavlov, Andrey; Wachter, Susan - In: The Journal of Real Estate Finance and Economics 38 (2009) 1, pp. 89-103
In this paper we offer direct evidence that financial intermediation does impact underlying asset markets. We develop a specific observable symptom of a banking system that underprices the put option imbedded in non-recourse asset-backed lending. Using a dataset for 19 countries and over 500...