"This book contends that the housing markets and shadow banking have been involved in a kind of "dance" over the last two decades. It traces this dance to be between the roles of mortgage markets since the 1980s in both the US and China and the developments of securitization and "shadow banks."...

This paper models the optimal riskiness of structured securitization deals. The deals are put together by “banks” that hold an equity piece of the deal and can exercise strategic options over the risk put into the deals. The banks face a tradeoff between the benefits of risk-taking now and...

It has been widely assumed that there was a bubble in the U.S. housing market after 1999. This paper analyzes the extent to which that was true. We define a bubble as: (1) a regime shift that is characterized by a change in the properties of deviations from the fundamentals of house price...