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down payments, the life-cycle profile of home ownership, and the mortgage default rate. In addition, we show that the …
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During the Great Recession, the collapse of consumption across the U.S. varied greatly but systematically with house-price declines. We find that financial distress among U.S. households amplified the sensitivity of consumption to house-price shocks. We uncover two essential facts: (1) the...
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whether delinquency has any predictive power of the future performance of a mortgage. Using a sample of subprime mortgages …
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