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Mortgages and monetary policy
Garriga, Carlos; Kydland, Finn E.; Šustek, Roman - London School of Economics (LSE) - 2013
Mortgage loans are a striking example of a persistent nominal rigidity. As a result, under incomplete markets, monetary policy affects decisions through the cost of new mortgage borrowing and the value of payments on outstanding debt. Observed debt levels and payment to income ratios suggest the...
Persistent link: https://www.econbiz.de/10011126379
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Modelling and forecasting UK mortgage arrears and possessions
Aron, Janine; Muellbauer, John - London School of Economics (LSE) - 2010
quarterly data over 1983-2009. A second innovation is the theory-justified use of an estimate of the proportion of mortgages in …
Persistent link: https://www.econbiz.de/10011126430
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Do long distance moves discourage homeownership? evidence from England
Ha, Sejeong; Hilber, Christian A. L. - London School of Economics (LSE) - 2013
We hypothesize that as the distance of a residential move increases, the cost of collecting information on the destination housing market rises, the amount and quality of information collected fall, and the chances of making an ill-informed housing purchase decision increases, reducing the...
Persistent link: https://www.econbiz.de/10011126634
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Policy design in a model with swings in risk appetite
De Paoli, Bianca; Zabczyk, Pawel - London School of Economics (LSE) - 2012
This paper studies the policy implications of habits and cyclical changes in agents' appetite for risk-taking. To do so, it analyses the non-linear solution of a New Keynesian (NK) model, in which slow-moving habits help match the cyclical properties of risk-premia. Our findings suggest that the...
Persistent link: https://www.econbiz.de/10010746337
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Banking stability measures
Segoviano, Miguel A.; Goodhart, Charles - London School of Economics (LSE) - 2009
The recent crisis underlined that proper estimation of distress-dependence amongst banks in a global system is essential for financial stability assessment. We present a set of banking stability measures embedding banks’ linear (correlation) and nonlinear distress-dependence, and their changes...
Persistent link: https://www.econbiz.de/10010744840
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Does monetary policy lose effectiveness during a credit crunch?
Bijapur, Mohan - London School of Economics (LSE) - 2010
This article investigates the effectiveness of monetary policy during a credit crunch by estimating a vector autoregression on the US economy. We present evidence that interest rate cuts have a diminished impact on growth, due to impairment in the relationship between monetary policy and the...
Persistent link: https://www.econbiz.de/10011126655
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Aggregate and regional disaggregate fluctuations
Quah, Danny - London School of Economics (LSE) - 1996
This paper models uctuations in regional disaggregates as a nonsta- tionary, dynamically evolving distribution. Doing so enables study of the dynamics of aggregate uctuations jointly with those of the rich cross-section of regional disaggregates. For the US, the leading state| regardless of...
Persistent link: https://www.econbiz.de/10010928698
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The Beveridge curve
Yashiv, Eran - London School of Economics (LSE) - 2007
underlying theory is the search and matching model, with workers and firms engaging in costly search leading to random matching …
Persistent link: https://www.econbiz.de/10010744873
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A theory of countercyclical government multiplier
Michaillat, Pascal - London School of Economics (LSE) - 2012
I develop a New Keynesian model in which a type of government multiplier doubles when unemployment rises from 5 percent to 8 percent. This multiplier indicates the additional number of workers employed when one worker is hired in the public sector. Graphically, in equilibrium, an upward-sloping...
Persistent link: https://www.econbiz.de/10010745284
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Volatility and development
Koren, Miklos; Tenreyro, Silvana - London School of Economics (LSE) - 2005
volatility into these four sources, quantify their contribution to aggregate volatility, and study how they relate to the stage …, and slowly increases at later stages of development. Third, the volatility of country-specific macroeconomic shocks falls … with the level of development. We argue that many theories linking volatility and development are not consistent with these …
Persistent link: https://www.econbiz.de/10010884605