Download or read book Three Essays on the Housing and Mortgage Markets written by Yuan Wang and published by . This book was released on 2015 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Housing and Mortgage Markets in Historical Perspective written by Eugene N. White and published by University of Chicago Press. This book was released on 2014-10-17 with total page 408 pages. Available in PDF, EPUB and Kindle. Book excerpt: The central role of the housing market in the recent recession raised a series of questions about similar episodes throughout economic history. Were the underlying causes of housing and mortgage crises the same in earlier episodes? Has the onset and spread of crises changed over time? How have previous policy interventions either damaged or improved long-run market performance and stability? This volume begins to answer these questions, providing a much-needed context for understanding recent events by examining how historical housing and mortgage markets worked—and how they sometimes failed. Renowned economic historians Eugene N. White, Kenneth Snowden, and Price Fishback survey the foundational research on housing crises, comparing that of the 1930s to that of the early 2000s in order to authoritatively identify what contributed to each crisis. Later chapters explore notable historical experiences with mortgage securitization and the role that federal policy played in the surge in home ownership between 1940 and 1960. By providing a broad historical overview of housing and mortgage markets, the volume offers valuable new insights to inform future policy debates.

Download or read book Essays on the Evolution of Housing and Mortgage Markets written by Xiaoming Li and published by . This book was released on 2011 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Three Essays on the Housing Market written by Fei Ding and published by . This book was released on 2016 with total page 198 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Fixing the Housing Market written by Franklin Allen and published by Pearson Prentice Hall. This book was released on 2012 with total page 214 pages. Available in PDF, EPUB and Kindle. Book excerpt: Explains the financial history leading to the mortgage meltdown and assesses today's housing finance systems in the United States and abroad.

Download or read book The Future of Housing Finance written by Martin Neil Baily and published by Brookings Institution Press. This book was released on 2011 with total page 225 pages. Available in PDF, EPUB and Kindle. Book excerpt: "Evaluates the options open to policymakers as they reassess the federal government's role in the U.S. residential mortgage market and consider a new system that reduces risk in mortgage lending, maintains a limited government role, and gradually removes the government-sponsored enterprises (Fannie Mae and Freddie Mac) from the mortgage market"--Provided by publisher.

Download or read book Prices Rents and Homeownership written by Philippe Bracke and published by . This book was released on 2012 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: This thesis includes three self-contained chapters whose common theme is the analysis of house price and rent movements, and how these movements influence the economic actions of individuals. In Chapter 1, I analyse a micro dataset on housing sales and rentals in Central London. I show that the ratio between prices and rents differ across property types: bigger and better located properties have higher price-rent ratios. These differences in price-rent ratios can be explained through a hedging model where households avoid rent risk by increasing their demand for homeownership. Consistently with this hypothesis, I find that rental prices for bigger properties and properties in more expensive neighbourhoods are not growing significantly faster than for other properties, but are more volatile. In Chapter 2, together with my two co-authors Christian Hilber and Olmo Silva, I study the relationship between homeownership and entrepreneurship by exploiting the longitudinal dimension of the British Household Panel Survey (BHPS) and constructing a detailed monthly-spell dataset that tracks individuals' job histories and tenure choices, coupled with other time-varying characteristics. Our fixed-effect estimates show that purchasing a house reduces the likelihood of starting a business by 20-25%. This result is driven by homeowners with mortgages and persists for several years after entering homeownership. The negative relationship can be rationalised by portfolio considerations: leveraged housing investments crowd out entrepreneurial investments. Alternative explanations based on credit constraints find little support in our data. In Chapter 3, I analyse the duration of house price upturns and downturns in the last 40 years for 19 OECD countries and provide two results. First, upturns display duration dependence: they are more likely to end as their duration increases. Second, downturns display lagged duration dependence: they are less likely to end if the previous upturn was particularly long. Both these facts are consistent with a boom-bust view of housing price dynamics, where booms represent departures from fundamentals that are increasingly difficult to sustain, and busts serve as readjustment periods.

Download or read book Three Essays on the Housing Market and the Macroeconomy written by Stefanie J. Huber and published by . This book was released on 2017 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: This thesis sheds light on certain macroeconomic aspects of the housing market. Chapter 1 explores a novel channel for house price bubble formation: the demand for housing consumption. I argue that the lower the demand for housing consumption, the larger the maximum bubble size, and the larger economies' vulnerability to house price bubbles. In terms of policy implications, I show that a help-to-buy scheme makes the economy more bubble-prone, while rental subsidies are an effective tool to reduce the prevalence of house price bubbles. Using a laboratory experiment, Chapter 2 supports the theoretical and empirical findings of Chapter 1. Chapter 3 investigates whether the persistent cross-country differences in homeownership rates are driven by cultural tastes. Analyzing the homeownership attitudes of second-generation immigrants in the United States leads to robust evidence for this hypothesis.

Download or read book Three Essays in Housing Economics written by Hanfu Li and published by . This book was released on 2013 with total page 116 pages. Available in PDF, EPUB and Kindle. Book excerpt: The result is consistent with the intuition that people tend to have a higher stress level due to the loss of home equity and this loss of home equity also increases the possibility of foreclosure, which is occurring in states with large house price declines, and thus increases homeowners' debt stress.

Download or read book Essays in Homeownership and Mortgage Finance written by Nirupama Kulkarni and published by . This book was released on 2016 with total page 149 pages. Available in PDF, EPUB and Kindle. Book excerpt: This dissertation consists of two chapters on mortgage finance and homeownership. Federal policy often institutes uniform pricing across regions in the name of fairness. I study the unintended consequences of such uniform pricing in the context of the residential mortgage market, which is heavily influenced by the securitization policies of the government sponsored enterprises (GSEs). I show that the regional uniformity of GSE-conforming mortgage rates leads to credit rationing. I develop three results by exploiting differences in the strength of lender rights -- state laws that limit a lender's recourse and ability to foreclose on property -- as a source of regional variation. First, controlling for borrower characteristics, I find that GSE-securitized mortgage rates do not vary across lender rights whereas those of privately securitized mortgages do vary. Second, the lack of regional variation in mortgage rates leads to the credit rationing of marginal borrowers in regions with borrower-friendly laws, whereas, regression discontinuity and bunching estimates show that the GSEs "cherry-pick" the better risks leading to greater credit access in lender-friendly areas. Finally, I find that the GSEs' cost of funds advantage distorts the pool of borrowers available to the private market and that only some of the GSE-rationed borrowers can access privately securitized mortgages. Overall, the results demonstrate how uniform regional pricing and cost of funds advantages of the GSEs distorts the competitive landscape of the US mortgage market. The second chapter studies the impact of homeownership on intergenerational mobility. The benefits of homeownership feature prominently in the academic and policy discussions alike. Increasing homeownership has been a major policy goal for decades, especially in low-income areas. We show that the positive relationship between homeownership and intergenerational mobility is highly place-dependent. First, we link commuting zone-level homeownership rates to intergenerational mobility, and find a strong positive relationship. The relationship persists after instrumenting for ownership using housing supply and price shocks. Second, we show that the positive relation between of homeownership and upward mobility is significantly diminished or disappears in areas with high sprawl or segregation, whether we use income segregation, racial segregation, or a new measure of homeowner segregation. These results, as well as additional findings on the formation of social capital and on school quality, suggest that homeownership may not benefit, or may even disadvantage children in segregated, poor areas, possibly through reduced residential mobility.

Download or read book Fortegnelse over Husholdnings Udstyrs Artikler fra Ernst Olsens Udstyrslager written by and published by . This book was released on 1881 with total page 12 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Three Essays on Housing and Labor Economics written by XUE HU and published by . This book was released on 2017 with total page 178 pages. Available in PDF, EPUB and Kindle. Book excerpt: These essays contribute towards our understanding of housing and labor economics. This dissertation is composed of three chapters. In the first chapter, I explore the impact of negative housing equity on households' geo- graphical mobility using data from Panel Study of Income Dynamics. The empirical analysis implies that addressing the endogeneity nature of homeowners' underwater mortgage status is crucial. Even with comprehensive controls for households' demographic characteristics and macro-level factors, omitted variable bias such as homeowners' attitudes towards their financial responsibility may still generate estimation bias that is quite large. After proper instrumenting for homeowners' underwater mortgage status using local shocks from housing and labor markets, the estimation results show that having underwater mortgages is associated with an average decline in mobility rate of about 17 percentage points. The second chapter investigates the role of housing choice and mortgage on employment transitions when there are uncertainties regarding income and house prices. Motivated by the empirical evidence on large employment-transition disparities between homeowners and renters, I develop and estimate a structural model in which mortgage obligations motivate homeowners to exert greater job-search efforts during unemployment spells. The model is used to understand individuals' response to housing and labor market shocks. I find that while the decline in house prices creates negative labor market externalities for renters, tightening mortgage constraints result in greater job search incentives for homeowners. With concurrent negative labor market shocks, the probability of transitioning out of unemployment for both renters and homeowners declines. Two policy experiments are conducted. The first shows that lower refinance cost discourages housing equity accumulation and is associated with a decline in the average employment rate. The second demonstrates that a lower down payment requirement encourages the transition into home ownership, which has positive labor market implications, especially for younger individuals. The first two chapters explore the relation between underwater mortgage and geographical mobility and impacts of mortgage debt obligation on employment incentives. Both analyses are based on individual-level data. The last chapter investigates the mysteries of regional housing market disparities from a macro perspective. This chapter shows that local economic conditions are correlated with deviations between house prices and rents in a price-rent model framework, suggesting that the demand for credit and housing is greater when a variety of local economic conditions are more supportive. Several different measures of local economic conditions are considered in this chapter: local unemployment rates, local unemployment rates relative to the natural rate of unemployment, local inflation rates, and measures of local perceptions of the cost of credit. This chapter attempts to offer explanations not as how or why house prices increased, but rather, given the myriad of national factors making home purchase easier and cheaper, where house prices increased. This approach also resolves a bit of a puzzle as to why the housing bubble was so pronounced in some areas and not others.

Download or read book Essays in Housing Markets and Financial Fragility written by Deeksha Gupta and published by . This book was released on 2018 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: This dissertation is motivated by the housing crisis of 2008. It consists of three chapters. In the first chapter, "Too Much Skin-in-the-Game? The Effect of Mortgage Market Concentration on Credit and House Prices," I propose a new theory to help explain the housing crisis. During the housing boom, a small number of institutions--the government-sponsored enterprises (GSEs) and a few banks--held most of U.S. mortgage risk. I develop a theory in which such concentration of mortgage exposure can explain features of the housing crisis. I show that large lenders with many outstanding mortgages have incentives to extend risky credit to prop up house prices. An increase in concentration can lead to a boom with worsening credit quality and a subsequent bust with widespread defaults. In the second chapter, "Concentration and Lending in Mortgage Markets," joint with Ronel Elul and David Musto, we attempt to test the theory described in the first chapter. We provide evidence that concentration in mortgage markets can create perverse lending incentives. We exploit variation in the size of the GSEs' outstanding mortgage exposure across MSAs. Using a loan-level dataset, we provide evidence that the GSEs were more likely to engage in high-risk activities in areas where they had a large exposure to outstanding mortgages. We also provide evidence that this relationship is driven by an incentive to keep house prices high. In the final chapter, "Housing Booms and the Crowding-Out Effect," joint with Itay Goldstein, we study the effect that investment in real estate assets has on the economy. We develop a theory in which housing price booms can sometimes lead to a crowding-out of corporate investment. We show that an increase in real estate prices does not necessarily increase aggregate investment even when firms actively use real estate assets as collateral to borrow against and invest the proceeds in positive NPV projects. We argue that at times, it can be optimal to decrease the price of housing rather than to support high housing prices to stimulate the economy and characterize when this is the case.

Download or read book Essays on Housing Markets and Location Activities written by Shaofeng Xu and published by . This book was released on 2012 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: My dissertation studies the impact of housing markets on the macroeconomy and the role of transport technologies in the firm location activities. The first chapter of this dissertation examines the contributions of population aging, mortgage innovation and historically low interest rates to the sharp rise in U.S. house prices and mortgage debt between 1994 and 2005. I construct an overlapping generation general equilibrium model with fully specified demographic characteristics and mortgage markets, and compare the steady state equilibrium of the economy in 1994 to that in 2005. Population aging contributes to rising house prices and mortgage debt but it only accounts for a very small portion of their observed changes. Meanwhile, mortgage innovation significantly increases the mortgage borrowing of various age cohorts, but it has a trivial effect on house prices because interest rates rise due to rising demand for mortgage loans. This increases households' saving in financial assets and leaves their housing assets nearly unchanged. However, the rise in house prices can be justified in an open economy where interest rates fall due to a global saving glut. Declining interest rates force households in primary saving ages to reallocate their wealth from financial assets to housing assets which dramatically drives up house prices. The second chapter of this dissertation analyzes the effects of idiosyncratic income shocks on the housing tenure decision of a risk-averse household who chooses an optimal time to own a house as well as an optimal house size. I provide an explicit decomposition of the household's optimal saving rule to formalize various motives for holding financial wealth during her housing tenure transition. It's shown that the timing flexibility of homeownership enables the household's saving for future home purchase to buffer her non-housing consumption against income risks. The model also lends support to the previous empirical finding of a negative uncertainty-homeownership relationship. Rising income volatility increases a risk-averse household's option value to wait and postpones her home acquisition. The third chapter of this dissertation investigates the impact of economies of scale in transportation on a firm's location decision. I relate the location problem to weighted Fermat problems and ramified optimal transportation problems and provide an explicit analysis of how transport technologies affect the firm's transportation and location choices. It's found that in general when the level of transport economies of scale is high, the firm locates its factory in the interior of the Weber triangle with a branching transport structure. Two examples are constructed to illustrate how interactions between transport technology and production technology would influence the firm's choices on input purchase and factory location.

Download or read book Essays in Housing Markets written by Nadezda Andreevna Kotova and published by . This book was released on 2021 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: This dissertation studies inefficiencies and riskiness in the US housing market. In Chapter I, coauthored with Anthony Lee Zhang, we study liquidity in residential real estate markets and show that market illiquidity is a key determinant of individual house price risk. In Chapter II, coauthored with Zi Yang Kang, we study how the quality of houses traded in a market evolves in the presence of predictable cyclical changes in market conditions. Chapter III studies how industrial concentration creates risk concentration through amplified pass-through of industry-specific productivity shocks into local house prices, wages, and employment.

Download or read book Essays on the U S Housing Market and the Credit Market written by Chuanlei Sun and published by . This book was released on 2012 with total page 148 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Essays in Real Estate Finance written by Sheharyar Javaid Bokhari and published by . This book was released on 2012 with total page 154 pages. Available in PDF, EPUB and Kindle. Book excerpt: This dissertation is a collection of three essays in real estate finance. In the first essay, we observe that between 1985 and 2007, the share of household mortgage debt as a proportion of the total value of housing in the US increased substantially from 30% to an all-time high of 50%. With the decline in house prices, these high levels of leverage increased the propensity at which households defaulted. We examine household decisions on mortgage leverage using new extensive loan-level data from Fannie Mae over the sample period 1986 to 2010. We conceptualize a market for leverage per se and develop a theory of leverage demand-and-supply. Empirically, we estimate an interest rate elasticity of leverage demand of -0.37 or, equivalently, a movement along the demand curve from an r-LTV pair of (10%, 72%) to that of (5%, 85%). We find that leverage demand was cyclical and responsive to economic events but without a general trend. By contrast, leverage supply shifts in the form of lower mortgage interest rates were concurrently associated with higher average loan-to-value ratios. We find that in MSAs with higher house prices, households borrowed more and bought equally more expensive houses. That left leverage unchanged but raised households' risk of illiquidity by increasing their loan-to-income ratios. In MSAs with high house price volatility, we find that both leverage demand and supply were lower. We also identify that younger, poorer and less credit-worthy borrowers demand more leverage than their counterparts. In the second essay, co-authored with David Geltner, we document that loss aversion behavior plays a major role in the pricing of commercial properties, and it varies both across the type of market participants and across the cycle. We find that sophisticated and more experienced investors are at least as loss averse as their counterparts and that loss aversion operated most strongly during the cycle peak in 2007. We also document a possible anchoring effect of the asking price in influencing buyer valuation and subsequent transaction price. We demonstrate the importance of behavioral phenomena in constructing hedonic price indices, and we find that the impact of loss aversion is attenuated at the aggregate market level. This suggests that the pricing and volume cycle during 2001 - 2009 was little affected by loss aversion. In the third essay, also co-authored with David Geltner, we present a technique to address the problem of data scarcity in the construction of high-frequency real estate price indexes. We introduce a two-stage frequency conversion procedure, by first estimating lower-frequency indexes staggered in time, and then applying a generalized inverse estimator to convert from lower to higher frequency return series. The two-stage procedure can improve the accuracy of high-frequency indexes in scarce data environments. The method is demonstrated and analyzed by application to empirical commercial property repeat-sales data.