We document that banking deregulation leads banks to offer lower initial rates on adjustable-rate mortgages to attract borrowers, but banks also shroud these contracts by increasing back-loaded resetting rates. More shrouding can be explained by higher proportion of naïve borrowers following...

The rapid increase in U.S. house prices during the 2001--2006 period was accompanied by a historically rapid expansion of bank assets. We exploit cross-regional variation in local housing booms to study how housing demand shocks affected the growth of the banking sector. We estimate the effect...

This paper examines the causal effect of bank credit expansion on fertility by exploiting exogenous increases in bank credit supply generated by the U.S. interstate branching deregulation between 1994 and 2005. I employ both traditional and staggered difference-in-difference methods to estimate...

This paper establishes a general model to explore the mechanism through which bank competition affects real estate market and consumer welfare. The model combines three sections, including a representative consumer, an oligopoly real estate industry, and a banking industry. It predicts that...

The perceived objective of price comparison sites is to aggregate price quotes from several firms. They are expected to reduce consumers' search costs and lead to more competitive markets. In this paper, I examine the difference in the prices consumers pay on comparison sites relative to...

The impact of house price declines on collateral values for consumer debt is well documented; we are the first to highlight a complementary effect through the bank branching network. Our identification strategy depends on following price declines in one housing market to all bank branches outside...

This United States Supreme Court amicus curiae brief was filed in the joint cases of Bank of America v. Caulkett and Bank of America v. Toledo-Cardona, which pose the question of whether a wholly underwater second-lien mortgage may be lien-stripped in a Chapter 7 bankruptcy. A previous Supreme...

This paper examines the architecture of money, role of central and commercial banks, structure and implementation of monetary policy tools (new and old), including the impact of the Basel Accords under the global consolidation of banking supervision by the Bank of International Settlements (BIS)...

We provide novel evidence that deposit competition incentivizes banks to securitize loans. Exploiting the state-specific removal of deposit market caps across the U.S. as an exogenous source of competition, we document a 7.1 percentage point increase in the probability that banks securitize...

We examine whether banks manage firms’ climate transition risks via corporate loan securitization. Results show that banks are more likely to securitize loans granted to firms that become more carbon-intensive. The effect is more pronounced if banks have a lower willingness to adjust loan...