EconStor Collection:
http://hdl.handle.net/10419/266
2024-03-19T03:42:45ZWhen does delinquency result in neglect? Mortgage distress and property maintenance
http://hdl.handle.net/10419/99125
Title: When does delinquency result in neglect? Mortgage distress and property maintenance
Authors: Lambie-Hanson, Lauren
Abstract: Studies of foreclosure externalities have overwhelmingly focused on the impact of forced sales on the value of nearby properties, typically finding modest evidence of foreclosure spillovers. However, many quality-of-life issues posed by foreclosures may not be reflected in nearby sale prices. This paper uses new data from Boston on constituent complaints and requests for public services made to City government departments, matched with loan-level data, to examine the timing of foreclosure externalities. I find evidence that property conditions suffer most while homes are bank owned, although reduced maintenance is also common earlier in the foreclosure process. Since short sales prevent bank ownership, they should result in fewer neighborhood disamenities than foreclosures.2013-01-01T00:00:00ZWealth shocks and macroeconomic dynamics
http://hdl.handle.net/10419/99117
Title: Wealth shocks and macroeconomic dynamics
Authors: Cooper, Daniel; Dynan, Karen
Abstract: The effect of wealth on consumption is an issue of longstanding interest to economists. Analysts believe that fluctuations in household wealth have driven major swings in economic activity. This paper considers so-called wealth effects - the impact of changes in wealth on household consumption and the overall macroeconomy. There is an extensive existing literature on wealth effects, but there are also many unanswered issues and questions. This paper reviews the important issues regarding the role wealth plays in the macroeconomy and argues that there is a need for much more wealth effect research as well as better data sources for conducting such analysis.2013-01-01T00:00:00ZSecurity of retail payments: The new strategic objective
http://hdl.handle.net/10419/99128
Title: Security of retail payments: The new strategic objective
Authors: Stavins, Joanna
Abstract: The Federal Reserve Financial Services Strategic Plan for 2012 - 2016 specifies five main policy goals for the next few years. The second of its goals is to "Maintain public confidence in the end-to-end safety and security of clearing and settlement systems." Indeed, in each annual Survey of Consumer Payment Choice (SCPC), respondents consistently rank security as the most important characteristic of payment methods. However, in regressions of consumer payment use, security is not as significant as other payment attributes, such as cost, convenience, or record keeping. We analyze that puzzle by looking closely at how consumers' assessments of payment method security relate to their actual payment behavior, including testing whether consumers are more likely to use payment methods they consider more secure. Econometric results show that concerns about security create an obstacle to the adoption of some of the bank account-based payments - debit cards, online banking bill pay, and bank account number payments - but once adopted, there is no significant effect of security rating on the use of those payment instruments. The reverse is found for more established payment methods - cash, checks, and credit cards: consumers' perception of security does not influence adoption, but it does affect their actual payment use. Policy simulation results show that security improvements applied to individual payment instruments would increase the adoption of some payments, but once those payment instruments were adopted, security improvements would have only a small effect on the use of those payments.2013-01-01T00:00:00ZThe Credit CARD Act of 2009: What did banks do?
http://hdl.handle.net/10419/99126
Title: The Credit CARD Act of 2009: What did banks do?
Authors: Jambulapati, Vikram; Stavins, Joanna
Abstract: The Credit CARD Act of 2009 was intended to prevent practices in the credit card industry that lawmakers viewed as deceptive and abusive. Among other changes, the Act restricted issuers' account closure policies, eliminated certain fees, and made it more difficult for issuers to change terms on credit card plans. Critics of the Act argued that because of the long lag between approval and implementation of the law, issuing banks would be able to take preemptive actions that might disadvantage cardholders before the law could take effect. Using credit bureau data as well as individual data from a survey of U.S. consumers, we test whether banks closed consumers' credit card accounts or otherwise restricted access to credit just before the enactment of the CARD Act. Because the period prior to the enactment of the CARD Act coincided with the financial crisis and recession, causality in this case is particularly difficult to establish. We find evidence that a higher fraction of credit card accounts were closed following the Federal Reserve Board's adoption of its credit card rules. However, we do not find evidence that banks closed credit card accounts or deteriorated terms of credit card plans at a higher rate between the time when the CARD Act was signed and when its provisions became law.2013-01-01T00:00:00Z