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Brunnermeier, Markus K; Julliard, Christian - C.E.P.R. Discussion Papers - 2007

A reduction in inflation can fuel run-ups in housing prices if people suffer from money illusion. For example, investors who decide whether to rent or buy a house by simply comparing monthly rent and mortgage payments do not take into account that inflation lowers future real mortgage costs. We...

Persistent link: https://www.econbiz.de/10005067397

The Myth of Financial Innovation and the Great Moderation

Den Haan, Wouter; Sterk, Vincent - C.E.P.R. Discussion Papers - 2009

empirical evidence supporting the view that innovation in consumer credit and home mortgages reduced cyclical variations of key … economic variables. We find that especially the behaviour of aggregate home mortgages changed less during the great moderation … than is typically believed. For example, aggregate home mortgages declined during monetary tightenings, both before and …

Persistent link: https://www.econbiz.de/10008477177

Differences in Portfolios across Countries: Economic Environment versus Household Characteristics

Christelis, Dimitris; Georgarakos, Dimitris; Haliassos, … - C.E.P.R. Discussion Papers - 2010

, and mortgages among households aged fifty or more in thirteen countries, using new and comparable survey data. We employ … smaller ones in homes, and to have larger mortgages in older age, even controlling for characteristics. This is consistent …

Persistent link: https://www.econbiz.de/10008642873

Credit Booms and Lending Standards: Evidence From The Subprime Mortgage Market

DellAriccia, Giovanni; Igan, Deniz; Laeven, Luc - C.E.P.R. Discussion Papers - 2008

competing lenders. Finally, increased ability to securitize mortgages appears to have affected lender behaviour, with lending …

Persistent link: https://www.econbiz.de/10005666586

Household Debt and Social Interactions

Georgarakos, Dimitris; Haliassos, Michalis; Pasini, Giacomo - C.E.P.R. Discussion Papers - 2012

Debt-induced crises, including the subprime crisis, are usually attributed exclusively to supply-side factors. We examine the role of social influences on debt culture, emanating from perceived average income of peers. Utilizing unique information from a household survey, representative of the...

Persistent link: https://www.econbiz.de/10011084156

The Role of Prepayment Penalties in Mortgage Loans

Beltratti, Andrea E; Benetton, Matteo; Gavazza, Alessandro - C.E.P.R. Discussion Papers - 2015

reform in Italy that reduced penalties on outstanding mortgages and banned penalties on newly-issued mortgages. Using a … unique dataset of mortgages issued by a large Italian lender before and after the reform, we provide evidence that: 1) before … the reform, mortgages issued to riskier borrowers included larger penalties; 2) higher prepayment penalties decreased …

Persistent link: https://www.econbiz.de/10011207398

Who Integrates?

Bühler, Stefan; Schmutzler, Armin - C.E.P.R. Discussion Papers - 2003

We examine vertical backward integration in oligopoly. Analysing a standard linear Cournot model, we find that for wide parameter ranges (i) some firms integrate, while others remain separated, and (ii) efficient firms are more likely to integrate vertically. Adopting a reduced-form approach, we...

Persistent link: https://www.econbiz.de/10005504590

Exclusive Dealing and Entry, when Buyers Compete

Fumagalli, Chiara; Motta, Massimo - C.E.P.R. Discussion Papers - 2002

Rasmusen et al. (1991) and Segal and Whinston (2000) show that an incumbent monopolist might exclude entry of a more efficient competitor, by exploiting externalities among buyers. We show that their results hold only when downstream competition among buyers does not exist or is weak enough....

Persistent link: https://www.econbiz.de/10005791363

Do Firms' Product Lines Include Too Many Varieties, and Do Shops Open Too Many Days?

Klemperer, Paul; Padilla, Atilano Jorge - C.E.P.R. Discussion Papers - 1993

This paper attempts to give a meaning to the empty concept of subsidiarity. It examines various kinds of government activity with respect to the optimal layer of government in Europe at which these activities should be performed. The paper criticizes Europe's industrial policies and its...

Persistent link: https://www.econbiz.de/10005791864

Exclusive Contracts, Loss to Delay and Incentives to Invest

Groh, Christian; Spagnolo, Giancarlo - C.E.P.R. Discussion Papers - 2004

We model a new effect of exclusivity on non-contractible investments in buyer/seller relationships. By restricting the buyer to purchase from only one seller, exclusivity increases the buyer’s costs of haggling during renegotiation and hence the seller’s relative bargaining power and...

Persistent link: https://www.econbiz.de/10005497871