In this paper we analyze how spillovers in mortgage adoption affect mortgage product choice across neighborhoods and across borrowers of different racial or ethnic groups. We use loan-level data on subprime mortgages for metropolitan areas in California and Florida during 2004 and 2005, the peak...

We use data from a housing assistance experiment to estimate a model of neighborhood choice. The experimental variation, which effectively randomizes the rents that households face, helps us to identify a key structural parameter of the model. Access to two randomly-selected treatment groups, in...