After the collapse of housing markets during the Great Depression, the U.S. government played a large role in shaping the future of housing finance and policy. Soon thereafter, housing markets witnessed the largest boom in recent history. The objective in this paper is to quantify the...

This paper analyzes the connection between the asymmetric tax treatment of homeowners and landlords and the progressivity of income taxation using a quantitative overlapping generations general equilibrium model with housing and rental markets. Our model emphasizes the determinants of tenure...

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...

After the collapse of housing markets during the Great Depression, the government played a large role shaping the future of the housing .nance, housing policy in the New Deal, as well as the development of the GI Bill for war veterans that had signi.cant importance for mortgage .nance and...

Foreclosure rates have soared during the recent housing crisis. In this paper we argue that exploring the implications of the legal environment pertinent to foreclosures is very relevant to the understanding of the macroeconomic transmission of the financial crises. Foreclosure law is designed...

This paper describes a quantitative model developed to understand the key determinats of house prices boom-and-bust cycles. The key driving forces behind the boom are residential investment, immigration, current account deficits, relaxation of downpayment constraints, and the elimination of land...

The empirical evidence from the last decade suggests that sizeable increases in housing defaults can be the result of either income shocks (recession 2001) or changes in the market value of the house (2005-2007 period). The objective of this paper is to understand the double feedback mechanism...

This paper analyzes the connection between the asymmetric tax treatment of homeowners and landlords and the progressivity of income taxation using a quantitative overlapping generations general equilibrium model with housing and rental markets. Our model emphasizes the determinants of tenure...

This paper analyzes the connection between the asymmetric tax treatment of homeowners and landlords and the progressivity of income taxation using a quantitative overlapping generations general equilibrium model with housing and rental markets. Our model emphasizes the determinants of tenure...

The objective of this paper is to understand how loan structure affects (i) the borrower’s selection of a mortgage contract and (ii) the aggregate economy. We develop a quantitative equilibrium theory of mortgage choice where households can choose from a menu of long-term (nominal) mortgage...