This paper considers the association between regulatory management evaluations and bank accounting returns and risk. For robustness, we estimate our tests using a matched sample with equal numbers of banks with and without weak regulatory management evaluations. We document a strong association...

This paper models the housing sector, mortgages and endogenous default in a DSGE setting with nominal and real rigidities. We use data for the period 1981-2006 to estimate our model using Bayesian techniques. We analyze how an increase in risk in the mortgage market raises the default rate and...