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Household Leverage and the Recession of 2007 to 2009

Mian, Atif; Sufi, Amir - 2021

We show that household leverage as of 2006 is a powerful statistical predictor of the severity of the 2007 to 2009 recession across U.S. counties. Counties in the U.S. that experienced a large increase in household leverage from 2002 to 2006 showed a sharp relative decline in durable consumption...

Persistent link: https://www.econbiz.de/10013224411

House Prices, Home Equity-Based Borrowing, and the U.S. Household Leverage Crisis

Mian, Atif - 2010

Using individual-level data on homeowner debt and defaults from 1997 to 2008, we show that borrowing against the increase in home equity by existing homeowners is responsible for a significant fraction of both the sharp rise in U.S. household leverage from 2002 to 2006 and the increase in...

Persistent link: https://www.econbiz.de/10013151131

Household Leverage and the Recession

Philippon, Thomas - 2011

We evaluate and partially challenge the ‘household leverage' view of the Great Recession. In the data, employment and consumption declined more in states where household debt declined more. We study a model where liquidity constraints amplify the response of consumption and employment to...

Persistent link: https://www.econbiz.de/10013126217

Household Leverage and the Deductibility of Home Mortgage Interest : Evidence from UK House Purchasers

Hendershott, Patric H. - 2010

During the last quarter century, mortgage interest deductibility has been gradually phased out. In 1974 a ceiling was set on the size of the mortgage eligible for interest deductibility (oelig;30,000 since 1983) and, beginning in 1993, the maximum rate at which interest under that ceiling could...

Persistent link: https://www.econbiz.de/10012762984

Identifying the Benefits from Home Ownership : A Swedish Experiment

Sodini, Paolo - 2016

This paper studies the economic benefits of home ownership. Exploiting a quasi-experiment surrounding privatization decisions of municipally-owned apartment buildings, we obtain random variation in home ownership for otherwise similar buildings with similar tenants. We link the tenants to their...

Persistent link: https://www.econbiz.de/10012978099

Credit Building or Credit Crumbling? A Credit Builder Loan's Effects on Consumer Behavior, Credit Scores and Their Predictive Power

Burke, Jeremy - 2019

How does the large market for credit score improvement products affect consumers and market efficiency? For consumers, we use a randomized encouragement design on a standard credit builder loan (CBL) and find null average effects on scores. But a generalized random forest algorithm finds...

Persistent link: https://www.econbiz.de/10012865281

What Have They Been Thinking? Home Buyer Behavior in Hot and Cold Markets

Case, Karl E. - 2012

Questionnaire surveys undertaken in 1988 and annually from 2003 through 2014 of recent homebuyers in each of four U.S. metropolitan areas shed light on their expectations and reasons for buying during the recent housing boom and subsequent collapse. They also provide insight into the reasons for...

Persistent link: https://www.econbiz.de/10013100364

The Housing Wealth Effect : The Crucial Roles of Demographics, Wealth Distribution and Wealth Shares

Calomiris, Charles W. - 2012

Current estimates of housing wealth effects vary widely. We consider the role of omitted variables suggested by economic theory that have been absent in a number of prior studies. Our estimates take into account age composition and wealth distribution (using poverty rates as a proxy), as well as...

Persistent link: https://www.econbiz.de/10013112421

Wealth Accumulation and Housing Choices of Young Households : An Exploratory Investigation

Haurin, Donald R. - 2015

homeownership. The factors related to this increase are marriage, increased labor supply by married women, and gifts …

Persistent link: https://www.econbiz.de/10012750797

Measuring Bias in Consumer Lending

Dobbie, Will - 2018

This paper tests for bias in consumer lending decisions using administrative data from a high-cost lender in the United … Kingdom. We motivate our analysis using a simple model of bias in lending, which predicts that profits should be identical for … marginal loan applicants by exploiting variation from the quasi-random assignment of loan examiners. We find significant bias …

Persistent link: https://www.econbiz.de/10012911705