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Persistent link: https://www.econbiz.de/10012138895
The last decade has brought about substantial mortgage innovation and increased refinancing. The objective of this paper is to understand the determinants and implications of mortgage choice in the context of a general equilibrium model with incomplete markets. The equilibrium characterization...
Persistent link: https://www.econbiz.de/10010292368
Mortgages are prime examples of long-term nominal loans. As a result, under incomplete asset markets, monetary policy …, have larger real effects than transitory shocks. The transmission is stronger under adjustable- than fixed-rate mortgages …
Persistent link: https://www.econbiz.de/10011381008
the model to examine the implications of alternative mortgages for homeownership. The authors use the model to show that … interest rate-adjustable mortgages and combo loans can help explain the rise-and fall-in homeownership since 1994. …
Persistent link: https://www.econbiz.de/10005519678
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
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/10011185835
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/10011027315
While the data seem to suggest that lenders did the right thing by tightening standards and increasing denials...the ongoing financial crisis suggests that they did not tighten them enough.
Persistent link: https://www.econbiz.de/10004998165
In this paper we use a standard neoclassical model supplemented by some frictions to understand large price swings in the housing market. We construct a two good general equilibrium model in which housing is a composite good produced using structures and land. We revisit the connection between...
Persistent link: https://www.econbiz.de/10010558738
Persistent link: https://www.econbiz.de/10010226701