With regard to the recent US house price cycle, we analyze how the interaction between housing supply restrictions, mortgage credit constraints and a price-to-price feedback loop affects house price volatility. Considering 247 Metropolitan Statistical Areas, we estimate a simultaneous boom-bust...

Der Boom auf dem US-amerikanischen Eigenheimmarkt in den frühen 2000er Jahren führte zur schwersten Finanzkrise der vergangenen Jahrzehnte. Wissenschaftler haben unterschiedliche Faktoren dokumentiert, die zum rasanten Anstieg der Immobilienpreise beigetragen haben. Kaum beleuchtet wurde...

We document that banking deregulation leads banks to offer lower initial rates on adjustable-rate mortgages to attract borrowers, but banks also shroud these contracts by increasing back-loaded resetting rates. More shrouding can be explained by higher proportion of naïve borrowers following...

This paper studies the role of the Community Reinvestment Act (CRA) in the recent US housing boom-bust cycle. Using a difference-in-differences matching estimation, I find that the enhancement of CRA enforcement in 1998 caused a 7.7 percentage points increase in annual growth rate of mortgage...

This paper studies the role of the Community Reinvestment Act (CRA) in the recent US housing boom-bust cycle. Using a difference-in-differences matching estimation, I find that the enhancement of CRA enforcement in 1998 caused a 7.7 percentage points increase in annual growth rate of mortgage...

This paper studies the role of the Community Reinvestment Act (CRA) in the US housing boom-bust cycle. I find that the enhancement in CRA enforcement in 1998 increased the growth rate of mortgage lending by CRA-regulated banks to CRA-eligible census tracts. I show that during the boom period...

This paper studies the role of the Community Reinvestment Act (CRA) in the US housing boom-bust cycle. I find that the enhancement in CRA enforcement in 1998 increased the growth rate of mortgage lending by CRA-regulated banks to CRA-eligible census tracts. I show that during the boom period...

Der Boom auf dem US-amerikanischen Eigenheimmarkt in den frühen 2000er Jahren führte zur schwersten Finanzkrise der vergangenen Jahrzehnte. Wissenschaftler haben unterschiedliche Faktoren dokumentiert, die zum rasanten Anstieg der Immobilienpreise beigetragen haben. Kaum beleuchtet wurde...

It has been over a decade since the peak of house prices in the US was attained, and while there has been a concerted regulatory response to the subsequent collapse, the two Government Sponsored Enterprises (GSEs) remain in conservatorship. While this action served to forestall a deeper crisis...

The global financial crisis that emerged in mid-2007 has caused considerable economic disruptions in the United States and elsewhere, and exposed major flaws in the global financial system. After examining the origins of the crisis, this paper recommends specific policy responses to resolve the...