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Using Bankruptcy to Reduce Foreclosures: Does Strip-down of Mortgages Affect the Supply of Mortgage Credit?

Li, Wenli; Tewari, Ishani; White, Michelle - CESifo - 2014

We assess the credit market impact of allowing mortgage “strip-down” as a foreclosure-prevention measure, where strip … effective foreclosure-prevention program, because it would have only small and transient effects on the supply of mortgage loans. …-term reduction in mortgage interest rates and a small, short-term increase in mortgage approval rates, but no long-term effects, and …

Persistent link: https://www.econbiz.de/10010877889

The Impact of Foreclosure on Housing Prices

Siebert, Ralph - CESifo - 2015

The aim of the study is to explain if the foreclosure effect on prices is explained by a lower quality of foreclosed … estimate the impact of foreclosure on home prices in Florida and Indiana from 2000 to 2008. We employ a model of housing demand …-specific quality explains the vast majority of the foreclosure effects on house prices. Our results also show that foreclosed homes in …

Persistent link: https://www.econbiz.de/10011163066

When Backward Integration by a Dominant Firm Improves Welfare

Linnemer, Laurent - CESifo - 2002

This paper studies the welfare consequences of a vertical merger that raises rivals‘ costs when downstream competition is à la Cournot between firms with constant asymmetric marginal costs. The main result is that such a vertical merger can nevertheless improve welfare if it involves a...

Persistent link: https://www.econbiz.de/10005051572

Optimal Risk-Sharing in Mortgage Contracts: The Effects of Potential Prepayment and Default

Brueckner, Jan K.; Lee, Kangoh - CESifo - 2014

Much of the literature on the economics of mortgage markets has studied the FRM-ARM choice made by individual borrowers … of optimal risk-sharing in mortgage contracts. But since only a small literature has studied this question, more research …’s (1986a) model, using it to characterize optimal contracts in the absence of mortgage termination, and then exploring how …

Persistent link: https://www.econbiz.de/10010948814

Time-Varying Exchange Rate Basket in China from 2005 to 2009

Fidrmuc, Jarko - CESifo - 2010

We use the Kalman filter to estimate the structure of the secret currency basket of the renminbi based on daily data between 2005 and 2009. The currency weights of selected currencies are modeled as stochastic processes (random walks). The official announcement of the new exchange rate regime in...

Persistent link: https://www.econbiz.de/10008511600

Bank Bailouts, International Linkages and Cooperation

Niepmann, Friederike; Schmidt-Eisenlohr, Tim - CESifo - 2011

Financial institutions are increasingly linked internationally. As a result, financial crisis and government intervention have stronger effects beyond borders. We provide a model of international contagion allowing for bank bailouts. While a social planner trades off tax distortions, liquidation...

Persistent link: https://www.econbiz.de/10008872219

Euro Area SMEs under Financial Constraints: Belief or Reality?

Artola, Concha; Genre, Veronique - CESifo - 2011

During the recent financial crisis, euro area firms, and especially Small and Medium-sized Enterprises, have been reporting acute problems of access to external finance. Using firm-level replies to the SME survey on access to finance, we use two indicators of financing constraints based on...

Persistent link: https://www.econbiz.de/10009371348

Debt Sustainability and Financial Crises: Evidence from the GIIPS

Legrenzi, Gabriella Deborah; Milas, Costas - CESifo - 2011

We assess the sustainability of the public finances of Greece, Ireland, Italy, Portugal and Spain (GIIPS), allowing for possible non-linearities in the form of threshold behaviour of the fiscal authorities. We provide some evidence of fiscal sustainability when debt gets “too high” relative...

Persistent link: https://www.econbiz.de/10009320775

Government Guarantees and Bank Risk Taking Incentives

Fischer, Markus; Hainz, Christa; Rocholl, Jörg; … - CESifo - 2014

This paper analyzes the effect of the removal of government guarantees on bank risk taking. We exploit the removal of guarantees for German Landesbanken which results in lower credit ratings, higher funding costs, and a loss in franchise value. This removal was announced in 2001, but...

Persistent link: https://www.econbiz.de/10010752789

Inter-temporal Savings, Current Account Dynamics and Asymmetric Shocks in a Heterogeneous European Monetary Union

Schnabl, Gunther; Zemanek, Holger - CESifo - 2010

In the current debate on the reasons and implications of the Greek and Irish euro crisis, the intra-European current account imbalances have gained rising attention. Whereas Greece and Ireland struggle for austerity in private and public spending, Germany is urged to reduce its current account...

Persistent link: https://www.econbiz.de/10008833919