Tag Archives: Housing

Heterogeneity in the MPC: Evidence from the Crisis

We find evidence supportive of heterogeneity in the MPC by household income and leverage. For example, the MPC for households living in zip codes with an average annual income of less than $35 thousand is three times as large as … Continue reading

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One thing I learned in Hanover this weekend – UK Housing Subsidies Edition

Sorry for the light posting – I was out of town for a college reunion. It was great to talk to old classmates. One of my friends who lives in London told me about new UK mortgage subsidy programs that … Continue reading

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Will Housing Save the U.S. Economy? by Amir Sufi

Sufi has a short paper on this issue that is worth reading. My bottom line is that we need to temper our optimism on what  a housing recovery can do for the U.S. economy. I agree that house prices will continue … Continue reading

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Manufacturing Decline, Housing Booms, and Non-Employment

Kerwin Kofi Charles, Erik Hurst, and Matt Notowidigdo argue that the housing boom masked a structural decline in manufacturing employment in a recent paper. They estimate that 40% of the increase in non-employment from 2000-2011 can be attributed to the … Continue reading

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Concentration in Mortgage Lending, Refinancing Activity, and Mortgage Rates

Here’s a recent paper from David Scharfstein and Adi Sunderam on the effects of mortgage market concentration on refinancing effectiveness. Seems like some interesting variation that could be used to trace out the effects of refinancing on consumption in a follow up … Continue reading

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An Economic To Do List From Larry Summers

Do more than focus on the deficit Avoid sequester and spread cuts overtime Address international aspects of corporate tax reform (see related posts here and here) Fix housing finance and loosen GSE lending restrictions modestly Accelerate the transformation of the … Continue reading

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The Growth of Modern Finance

From Robin Greenwood and David Scharfstein: Whether the growth of the financial sector has been beneficial to society depends in large part on the social benefits of active asset management, the increase in household credit, and the growth of shadow banking. … Continue reading

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