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relying on the use of micro-level data on US mortgage loan applications, which allows me to identify liquidity risk as an … to liquidity risk contracted their supply of credit more sharply. I contribute to the identification of this effect by … important determinant of the contraction of credit in the mortgage market, but as separate from the precipitous fall in credit …
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We observe significant heterogeneity in the correlation between changes in house prices and the growth of small firms across certain countries in Europe. We find that, overall, the correlation is far greater in Southern Europe than in Northern Europe. Using a simple model, we show that this...
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We consider a Keynes-Goodwin model of effective demand and the distributive cycle where workers purchase goods and houses with marginal propensity significantly larger than one. They therefore need credit, supplied from asset holders, and have to pay interest on their outstanding debt. In this...
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