Working Paper: NBER ID: w18339
Authors: John Y. Campbell
Abstract: This paper explores the causes and consequences of cross-country variation in mortgage market structure. It draws on insights from several fields: urban economics, asset pricing, behavioral finance, financial intermediation, and macroeconomics. It discusses lessons from the credit boom, the challenges of mortgage modification in the aftermath of the boom, consumer financial protection, and alternative mortgage forms and funding models. The paper argues that the US has much to learn from mortgage finance in other countries, and specifically from the Danish implementation of the European covered bonds system.
Keywords: No keywords provided
JEL Codes: G21; R21; R31
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| government policies and historical developments (N40) | U.S. mortgage system structure and performance (G21) |
| historical policy decisions, economic incentives, and borrower behavior (G51) | mortgage market outcomes (G21) |
| structure of mortgage markets (G21) | macroeconomic stability (E60) |
| foreclosures (G21) | property values (R33) |
| long-term fixed-rate mortgage system (G21) | economic stability (E63) |