We now know that the subprime market presented consumers with sub-optimal choices that they took, and that it contained many market imperfections. The interesting question, then, is what were the sources of imperfections. In the spirit of providing an introduction for this special issue of the...

The impact of borrowing constraints on homeownership has been well established in the literature. Wealth is most likely to restrict homeownership followed by credit and income. Using recent movers from the 1979 National Longitudinal Survey of Youth and borrowing constraint definitions commonly...