model two shocks are well suited to replicate the subprime crisis and the Great Recession: the mortgage risk shock and the … risk in the mortgage market raises the default rate and spreads to the rest of the economy, creating a recession. In our … housing demand shock. Next we use our estimated model to evaluate a policy that reduces the principal of underwater mortgages …

In understanding the determinants of mortgage default, the consensus has moved from an ‘option theory' model to the … the determinants of mortgage default across five European countries, using a large dataset of over 2.3 million active … mortgage loans originated between 1991 and 2013 across over 150 banks. The analysis finds support for both elements of the …

associated with the liquidation of collateralized debt. Using the mortgage market as a laboratory, we conjecture that lenders …

decisively on prevailing loan-to-value (LTV) ratios in mortgage markets with borrowing constrained households. Utilizing a smooth … housing sector in times of high LTV ratios, which, through changes in mortgage lending and mortgage equity withdrawals (MEWs …

financial institutions in the transmission of credit and technology shocks to the real economy. A positive credit shock, defined … between loan and deposit rates. The effects of the credit shock tend to be highly persistent even without price rigidities and …

financial institutions in the transmission of credit and technology shocks to the real economy. A positive credit shock, defined … between loan and deposit rates. The effects of the credit shock tend to be highly persistent even without price rigidities and …

an aggregate shock borne by a region is positively correlated with the level of FD present at the time of the shock …