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During the Great Recession, the collapse of consumption across the U.S. varied greatly but systematically with house-price declines. We find that financial distress among U.S. households amplified the sensitivity of consumption to house-price shocks. We uncover two essential facts: (1) the...
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This paper introduces a dynamic general equilibrium model to study how the distribution of leverage and foreclosure … affect house prices.The model shows how foreclosure sales, through their effect on housing supply, amplify and propagate … leverage plays a key role in foreclosure, a regulator can reduce systemic risk by placing a cap on leverage. Counterfactual …
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more households partake in mortgage finance in their entry to homeownership, and (ii) financial intensity, in which … finance represents an 'alternative' channel to older dominant institutional entryways to homeownership. Secondly, Maltese …
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We study the link between homeownership, mortgage debt, and entrepreneurship using a model of occupational choice and …
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-percentage-point decline in homeownership for 28-to-30-year-olds over 2007-15 for these same nine cohorts. The results suggest that states that …
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