externalities from foreclosures. VPROs were widely adopted by local governments across the United States during the foreclosure … enactment of VPROs in Florida more than halved the negative externality from foreclosure. This finding is robust to a rich set …

, the reverse occurs. Based on these insights, I consider a foreclosure reform that makes all mortgages full recourse, and I … constraints. During housing busts, longer selling times spill over into higher foreclosure risk, thereby magnifying the response …

Mortgages are prime examples of long-term nominal loans. As a result, under incomplete asset markets, monetary policy …, have larger real effects than transitory shocks. The transmission is stronger under adjustable- than fixed-rate mortgages …