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We investigate the effect of declining house prices on household consumption behavior during 2006-2009. We use an individual-level dataset that has detailed information on borrower characteristics, mortgages and credit risk. Proxying consumption by individual-level auto loan originations, we...
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Financial, a leading US subprime mortgage lender, can be seen as a micro-version of the sudden reversal of fortunes that befell …
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conditions required by the banking system to grant a mortgage. The authors find that easier access to credit inflates housing …
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