In der wirtschaftswissenschaftlichen Literatur wird das ökonomische Potenzial von Immobilienverzehrprodukten vielseitig diskutiert. Obwohl diesen Produkten aus wohlfahrts-theoretischen Gesichtspunkten eine hohe Bedeutung beigemessen wird, zeigt die empirische Evidenz, dass die Nachfrage weit...

Regression models of a dependent variable that take on qualitative values 0 and 1 cannot be interpreted as conventional regression models. The fact that the dependent variable takes on two different values causes some problems in the model. These problems include the fact that the model’s...

This note considers the effect of changes in the well-being of U.S. residents owing to changes in the value of various financial assets. Ordinary least squares estimates reveal that equity market returns have a significant, and asymmetric, impact on well-being. This result is likely the result...

We examine the role of borrower concerns about future credit availability in mitigating the effects of adverse selection and income misrepresentation in the mortgage market. We show that the majority of additional risk associated with "low-doc'' mortgages originated prior to the Great Recession...

We re-evaluate two forms of fiscal illusion in local public finance: debt illusion and renter illusion. The Ricardian Equivalence Theorem for local governments suggests the form of finance of a public program (tax or debt finance) has no effects on substantive outcomes. For the local case, this...

Systemic risk must include the housing market, though economists have not generally focused on it. We begin construction of an agent-based model of the housing market with individual data from Washington, DC. Twenty years of success with agent-based models of mortgage prepayments give us hope...

The paper discusses two approaches to spatial equilibrium in the labor market. The more traditional approach of labor economics assumes wage differentials represent arbitrageable differences in utility, with implications 1) that migration should be toward higher wage areas and 2) that migration...

If mortgage borrowers default strategically, their future house price expectations should affect their present mortgage default decisions. Merging the Freddie Mac loan performance dataset with the Michigan Survey of Consumers data containing households' subjective expectations, this paper...