Title of article
Welfareimplicationsofthetransitiontohighhouseholddebt$
Author/Authors
JeffreyR.Campbell، نويسنده ,
Issue Information
روزنامه با شماره پیاپی سال 2008
Pages
16
From page
1
To page
16
Abstract
Aggressivederegulationofthemortgagemarketintheearly1980striggeredinnovations
that greatlyreducedindebtedhouseholds’requiredhomeequity,andaborrowingsurge
followed. Thispaperusesacalibratedgeneralequilibriummodeloflendingfromthe
wealthytothemiddleclasstoevaluatethewelfareeffectsofthisreformquantitatively.
Wefindthatthe‘‘indirect’’effectsofendogenousinterestrateandotherrelativeprice
changes dominatethe‘‘direct’’effectofrelaxingtheconstraint.Theborrowing
household’swelfarefallseventhoughthereformdirectlyrelaxesaconstraintonits
trade. Thesavinghousehold’swelfarerisessubstantially
Keywords
Financial deregulationMortgage debtInterestrates
Journal title
Journal of Monetary Economics
Serial Year
2008
Journal title
Journal of Monetary Economics
Record number
846269
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