We build a model of the aggregate housing and rental markets in which houseprices and rents are determined endogenously. Households can choose their housingtenure status (renters, homeowners, or landlords) and the size of their homes dependingon their age, income and wealth. We use our model to study the impact of changesin credit conditions on house prices, rents and household welfare.
Eirik Eylands Brandsaas and Jens Kvaerner
We use 25 years of tax records for the Norwegian population to study the mobility of wealth over people’s lifetimes. We find considerable wealth mobility over the life cycle. To understand the underlying mobility patterns, we group individuals with similar wealth rank histories using agglomerative hierarchical clustering, a tool from statistical learning. The mobility patterns we elicit provide evidence of segmented mobility. Over 60 percent of the population remains at the top or bottom of the wealth distribution throughout their lives.
Daniel RingoDespite the widespread use of fixed-rate mortgages in the United States, I show that monetary policy is effectively passed through to aggregate outstanding mortgage debt service. Using credit bureau, lender, and servicer data on mortgage payments and originations and exogenous monetary policy shocks, I estimate a mortgage rate semi-elasticity of payments over 10.
Sarena Goodman, Gina Li, Kevin Moore, and Alice Henriques VolzThe COVID-19 pandemic caused severe disruptions to the U.S. labor market and economic activity.
Using a novel dataset linking firm level data from the Survey on Access to Finance of Enterprises (SAFE) and bank level data from the Bank Lending Survey (BLS), we explore how changes in credit standards pass through to firms at a granular level. We find that tighter credit standards decrease loan availability reported by firms, increase the likelihood they report access to finance as the worst problem and decrease their investment. After controlling for country-sector-time fixed effects that capture cyclical macroeconomic conditions, effects only remain for firms that need finance.
From 1 September, to be eligible as Level B collateral in the Bank’s Sterling Monetary Framework, the minimum original issue size of a UK, French or German Regulated Covered Bond will be lowered to £500 million or €500 million, from £1 billion or €1 billion.
Charles M. Kahn, Ahyan Panjwani, and Joao A.C. SantosIn this paper, we introduce a model to study the interaction between insurance and banking. We build on the Federal Crop Insurance Act of 1980, which significantly expanded and restructured the decades-old federal crop insurance program and adverse weather shocks – over-exposure of crops to heat and acute weather events – to investigate some insights from our model.
Celso Brunetti, Matthew Carl, Jacob Gerszten, Chiara Scotti, and Chaehee ShinDoes interconnectedness improve market quality? Yes. We develop an alternative network structure, the assets network: assets are connected if they are held by the same investors. We use several large datasets to build the assets network for the corporate bond market.
Elizabeth Klee, Adair Morse, and Chaehee ShinFinancing cost differentials tilt the calculus for households toward electric vehicles (EVs). Using 85 million observations on U.S. auto loans, we study households’ credit risk by engine type, seek to uncover the sources and ask if credit risk differentials are being priced.
