Showing 41 - 50 of 102
Using a large sample of U.S. mortgages, we document contagion effects in strategic mortgage defaults. These result from borrowers choosing to exercise their in the money default option. Our findings suggest this choice is influenced by the delinquency rate in surrounding zip codes after...
Persistent link: https://www.econbiz.de/10013085688
Using a newly discovered dataset of U.S. bank suspensions from 1921 to 1929, we discovered that banking panics were more common in the 1920s than had been believed. Besides identifying panics, we investigate their determinants, finding that local banking panics were more likely when fundamental...
Persistent link: https://www.econbiz.de/10013065126
Using a large sample of U.S. mortgages observed over the 2005-2009 period, we find that foreclosures are contagious. After controlling for major factors known to influence a borrower's decision to default, including borrower and loan characteristics, local demographic and economic conditions,...
Persistent link: https://www.econbiz.de/10013066891
Using a newly constructed database of bank failures for the period 1900 to 1930, this paper estimates a dynamic regression model to examine the extent to which banking instability at the state level affects the proportion of state deposits relative to national deposits. The main results indicate...
Persistent link: https://www.econbiz.de/10013069316
This paper investigates the effect of bank failures on economic growth using data from 1900 to 1930, a period that predates active government stabilization policies and includes periods of banking system distress that are not coincident with recessions. Using both VAR and a...
Persistent link: https://www.econbiz.de/10013071075
This paper tests whether deposit insurance promotes financial depth by influencing depositor behavior. To do so, we rely on two schemes operating in the U.S. during the 1920s: the Postal Savings System and the deposit insurance schemes that some states had adopted. We exploit the discontinuity...
Persistent link: https://www.econbiz.de/10012957947
The history of the financing of the American corporation can be described along many dimensions. One dimension of that history that underlies various measures of historical change in corporate finance is the range of feasible relationships between corporations and intermediaries. Intermediaries...
Persistent link: https://www.econbiz.de/10012763786
This paper finds that the implementation of the Glass Steagall Act may have increased the cost for corporations of raising external funds for investment spending. Specifically, it detects significant differences in the way financial institutions (commercial banks, trust companies, and insurance...
Persistent link: https://www.econbiz.de/10012768035
This paper presents evidence suggesting that the relationship that existed between the partnership of J.P. Morgan and its client firms partially resolved the latter's external financing problems by diminishing the principal-agent and asymmetric information problems. I estimate and compare...
Persistent link: https://www.econbiz.de/10012768079
Measures of bilateral political relations are typically long-memory (fractionally integrated) processes. Appropriate inference and interpretation of this property hinges on the underlying reasons behind it. There are three possible explanations: (i) mechanical aggregation, (ii) bilateral...
Persistent link: https://www.econbiz.de/10012861056