Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/48726 
Full metadata record
DC FieldValueLanguage
dc.contributor.authorvon Lilienfeld-Toal, Ulfen
dc.contributor.authorMookherjee, Dilipen
dc.date.accessioned2011-08-12T09:51:35Z-
dc.date.available2011-08-12T09:51:35Z-
dc.date.issued2011-
dc.identifier.urihttp://hdl.handle.net/10419/48726-
dc.description.abstractMost analyses of the recent financial crisis in the US focus on the consequences of the dramatic slump in housing prices that started in the mid-2000s, which led to rising mortgage defaults, shrinking home equity credit and liquidity in the banking system. Yet these accounts do not explain what caused the reversal of housing price growth in the first place. This paper argues that the passage of the 2005 Bankruptcy Reform Act (BAPCPA) contributed significantly to the reversal. The reform generated negative wealth effects for a category of homeowners, lowering prices of their homes, which spread via a process of contagion to the prices of other homes. Evidence consistent with this hypothesis is provided: changes in housing prices and mortgage interest rates at the MSA level following the reform were significantly correlated with BAPCPA-exposure. The results are robust to controls for the size of the pre-2005 price growth, local unemployment rates, rates of new home construction and home vacancies, apart from MSA, house and year dummies.en
dc.language.isoengen
dc.publisherZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften, Leibniz-Informationszentrum Wirtschaft |xKiel und Hamburgen
dc.relation.ispartofseries|aBeiträge zur Jahrestagung des Vereins für Socialpolitik 2011: Die Ordnung der Weltwirtschaft: Lektionen aus der Krise - Session: Financial Crises |xA10-V3en
dc.subject.jelG01en
dc.subject.jelK35en
dc.subject.jelR30en
dc.subject.ddc330en
dc.titleHow Did the US Housing Slump Begin? The Role of the 2005 Bankruptcy Reform-
dc.typeConference Paperen
dc.identifier.ppn671754475en
dc.rightshttp://www.econstor.eu/dspace/Nutzungsbedingungenen
dc.identifier.repecRePEc:zbw:vfsc11:48726en

Files in This Item:
File
Size





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.