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Unemployment, negative equity, and strategic default

Gerardi, Kristopher; Herkenhoff, Kyle Frederic; … - Federal Reserve Bank of Atlanta - 2013

defaulters have both negative equity and enough liquid or illiquid assets to make one month's mortgage payment. This finding …

Persistent link: https://www.econbiz.de/10010739541

Homeownership and Entrepreneurship: The Role of Mortgage Debt and Commitment

Bracke, Philippe; Hilber, Christian; Silva, Olmo - CESifo - 2014

We study the link between homeownership, mortgage debt, and entrepreneurship using a model of occupational choice and … housing tenure where homeowners commit to mortgage payments. Our model predicts that, as long as mortgage rates exceed the … rate of interest on liquid wealth: (i) mortgage debt, by amplifying risk aversion, diminishes the likelihood that …

Persistent link: https://www.econbiz.de/10010948829

Homeownerhip and Entrepreneurship

Bracke, Philippe; Hilber, Christian; Silva, Olmo - Spatial Economics Research Centre, LSE - 2012

We study the link between homeownership and entrepreneurship by exploiting the longitudinal dimension of the British … after entering homeownership. The negative link can be rationalized by portfolio considerations: leveraged housing …

Persistent link: https://www.econbiz.de/10010543484

Homeownership and Entrepreneurship: The Role of Commitment and Mortgage Debt

Bracke, Philippe; Hilber, Christian; Silva, Olmo - Institute for the Study of Labor (IZA) - 2013

We study the link between homeownership and entrepreneurship using a model of occupational choice and housing tenure … where homeowners commit a fixed budget to mortgage payments. Our model predicts that: (i) mortgage commitments, by … amplifying risk aversion, diminish the likelihood that homeowners start a business; (ii) the negative link between homeownership …

Persistent link: https://www.econbiz.de/10010665153

Householdsï¿½ indebtedness and financial vulnerability in the Italian regions

Vacca, Valerio; Coin, Daniele; Conti, Antonio Maria; … - Banca d'Italia - 2013

This paper depicts ï¿½ from a variety of viewpoints ï¿½ the degree of indebtedness and potential financial vulnerabilities of households across the Italian regions. Micro-data from several sources suggest that the financial situation of Italian households shows striking differences at...

Persistent link: https://www.econbiz.de/10011100383

Wall Street and the Housing Bubble

Cheng, Ing-Haw; Raina, Sahil; Xiong, Wei - In: American Economic Review 104 (2014) 9, pp. 2797-2829

We analyze whether mid-level managers in securitized finance were aware of a large-scale housing bubble and a looming crisis in 2004-2006 using their personal home transaction data. We find that the average person in our sample neither timed the market nor were cautious in their home...

Persistent link: https://www.econbiz.de/10010891228

Mortgage Modification and Strategic Behavior: Evidence from a Legal Settlement with Countrywide

Mayer, Christopher; Morrison, Edward; Piskorski, Tomasz; … - In: American Economic Review 104 (2014) 9, pp. 2830-57

We investigate whether homeowners respond strategically to news of mortgage modification programs. We exploit plausibly … default otherwise. These results suggest that strategic behavior should be an important consideration in designing mortgage …

Persistent link: https://www.econbiz.de/10010891229

Mitigating financial fragility with Continuous Workout Mortgages

Shiller, Robert J.; Wojakowski, Rafał M.; Ebrahim, M. … - In: Journal of Economic Behavior & Organization 85 (2013) C, pp. 269-285

mortgage payment and mortgage balance of a repayment CWM; (c) a closed form formula for the actuarially fair mortgage rate of …

Persistent link: https://www.econbiz.de/10011048203

Consumer Credit: Too Much or Too Little (or Just Right)?

Zinman, Jonathan - National Bureau of Economic Research (NBER) - 2013

The intersection of research and policy on consumer credit often has a Goldilocks feel. Some researchers and policymakers posit that consumer credit markets produce too much credit. Other researchers and policymakers posit that markets produce too little credit. I review theories and evidence on...

Persistent link: https://www.econbiz.de/10010951083

Household Debt: Facts, Puzzles, Theories, and Policies

Zinman, Jonathan - National Bureau of Economic Research (NBER) - 2014

Borrowing decisions affect most households, with large stakes and implications for subfields as varied as macroeconomics and industrial organization. I review theoretical and empirical work on household debt: its prevalence, level, growth, and composition, as well as various measures of consumer...

Persistent link: https://www.econbiz.de/10010951247