What Fuels the Boom Drives the Bust
Regulation and The Mortgage Crisis
Bibliographic Data
| ID | 9705302 |
|---|---|
| Authors | Jihad Dagher (0000-0002-7015-6241, International Monetary Fund), Ning Fu (0009-0005-0203-6538, Harvard University) |
| Year | 2017 |
| Volume | 127 |
| Issue | 602 |
| Pages | 996-1024 |
| Publication date | 2017-06-01 |
| Open Access | Yes |
| Type | ARTICLE |
| Venue | The Economic Journal (JOURNAL) |
| Journal identifiers | ISSN: 0013-0133 • E-ISSN: 1468-0297 |
| Publisher | Oxford University Press (OUP) (PUBLISHER) |
| DOI | 10.1111/ecoj.12353 |
| OpenAlex | W3124201161 |
| Language | EN |
| Citations received | 1 |
| References cited | 44 |
The weakly regulated independent mortgage companies (IMCs) had a vastly disproportional contribution to the expansion in risky credit during the mortgage boom and to the ensuing foreclosure crisis. We exploit a quasi‐experimental setting, created by the inconsistency of state lender regulations between banks and IMCs and their heterogeneity across states, to isolate the impact of regulation on lending standards using county‐pairs straddling state borders. We find that weaker state regulation of IMCs is associated with a sharper expansion of IMCs, particularly in risky high‐yield loans, which were also of worse quality in the weakly regulated states, based on subsequent delinquency
Boom · Business · Bust · Economics · Exploit · Financial crisis · Financial system · Foreclosure · Macroeconomics · Monetary economics · State (computer science · Yield (engineering · Banking stability, regulation, efficiency · Engineering · Finance · Housing Market and Economics · Housing, Finance, and Neoliberalism
Foreclosed
Testing for Weak Instruments in Linear IV Regression
The Geographic Determinants of Housing Supply
House Prices, Home Equity–Based Borrowing, and the US Household Leverage Crisis
The Consequences of Mortgage Credit Expansion
Causal Inference With General Treatment Regimes
Shrouded Attributes, Consumer Myopia, and Information Suppression in Competitive Markets
Bias-Corrected Matching Estimators for Average Treatment Effects
Minimum Wage Effects Across State Borders
Foreclosing on Opportunity
Credit Supply and the Price of Housing
Credit Supply and the Price of Housing
State Antipredatory Lending Laws and Neighborhood Foreclosure Rates
The Impact of Federal Preemption of State Antipredatory Lending Laws on the Foreclosure Crisis
Housing supply and housing bubbles
The impact of local predatory lending laws on the flow of subprime credit
The Rise in Mortgage Defaults
| Citations per year | 0.2 |
|---|---|
| Citation span | 2021 - 2021 (1) |
| Highly cited | No |