The Effects of a Targeted Financial Constraint on the Housing Market
Published in Review of Financial Studies, 2021
Recommended citation: Review of Financial Studies, 2021 /files/The Effects of a Targeted Financial Constraint on the Housing Market.pdf
- Key Highlight: This paper studies how financial constraints affect the housing market by exploiting a regulatory change that increases the down payment requirement for homes selling for 1M dollars or more. Result shows that the policy causes excess bunching of homes listed at $1M and heightened bidding intensity for these homes, but a muted response in sales.