The Great Recession led to widespread mortgage defaults, with borrowers resorting to both foreclosures and short sales … to resolve their defaults. I first quantify the economic impact of foreclosures relative to short sales by comparing the … negative externalities than foreclosures, with one short sale decreasing nearby property values by 1 percentage point less than …

The authors estimate a structural model of optimal life-cycle housing and consumption in the presence of realistic … labor income and house price uncertainties. The model postulates constant elasticity of substitution between housing service …-sectional and time-series household wealth and housing profiles from the Panel Study of Income Dynamics quite well and suggests an …

Supersedes Working Paper 09-7. We estimate a structural model of optimal life-cycle housing and nonhousing consumption … between housing service and nonhousing consumption and explicitly incorporates a housing adjustment cost. Our estimation fits … the cross-sectional and time-series household wealth and housing profiles from the Panel Study of Income Dynamics (1984 to …

values as those observed between 2006 and 2011. We show that the responses depend importantly on the housing adjustment cost …We estimate a structural model of optimal life-cycle housing and nonhousing consumption in the presence of labor income … and house price uncertainties. The model postulates constant elasticity of substitution between housing service and …

decisions. We investigate empirically and theoretically the life-cycle patterns of homeownership, housing and nonhousing assets … in retirement. Using an estimated structural model of saving and housing decisions, we find, first, that homeowners … 1996-2006 housing boom significantly increased homeowners' assets. These channels are quantitatively significant; without …

This study provides new evidence on the impact of the Community Reinvestment Act (CRA) on mortgage lending by taking … Philadelphia market. The loss of CRA coverage leads to an over 10 percent decrease in purchase originations by CRA … market share was accompanied by a greater involvement in riskier and more costly FHA lending. This study demonstrates how …

We present a model of long-duration collateralized debt with risk of default. Applied to the housing market, it can … across homeowners prior to the recent crisis. We stress the role of favorable tax treatment of housing in matching these … foreclosure delays account for most of the rise in foreclosures. The scale of the foreclosure crisis might have been smaller if …

bust in the housing market. They analyze the key mechanisms that account for these facts, including the preferential tax … mortgage crisis by studying the consequence of an unanticipated increase in the supply of housing (overbuilding shock). They …The authors construct a quantitative equilibrium model of the housing sector that accounts for the homeownership rate …

Ten years after the mortgage crisis, the U.S. housing market has rebounded significantly with house prices now near the … phenomena by documenting the rising presence of institutional investors in this market. Our analysis makes use of housing … increasing presence of institutions in the housing market and the subsequent recovery in house prices and decline in …

We study the house price recovery in the U.S. single-family residential housing market since the outbreak of the … mortgage crisis, which, in contrast to the preceding housing boom, was not accompanied by a rise in homeownership rates. Using … demonstrate that institutional investors contribute to the improvement of the local housing market by reducing vacancy rates as …