This paper investigates the impact of non-recourse vs. recourse mortgages on housing price dynamics in major US metropolitan statistical areas for the period from 2000 to 2013. We find evidence that non-recourse states experience faster price growth during the boom period (2000-2006), a sharper...

This paper investigates the impact of the non-recourse vs. recourse mortgage on the housing price dynamics in American major metropolitan areas (MSAs). We find strong evidence that non-recourse states experience faster price growth during the boom (2000 to 2006) as well as sharper price drop...