Working Papers

The Impact of Crisis-Period Interest Rate Declines on Distressed Borrowers

Working Paper. 2022. Citation

  • Revise and Resubmit, Review of Financial Studies
  • Key Highlight: Distressed borrowers treated with larger benchmark interest rate declines benefit from increased debt-renegotiation and lower debt-service payments. However, following debt-renegotiation, surviving treated borrowers re-enter and linger in serious delinquency. Findings suggest that while monetary policy may effect reductions in benchmark rates and spur debt-renegotiation, such interventions may not lead to longer-run curative outcomes.

Highly Disaggregated Land Unavailability

Working Paper. 2022. Citation

Mortgage Innovation and House Price Booms

Working Paper. 2022. Citation

  • Key Highlight: The Danish introduction of IO mortgages ignited a housing boom: due to their introduction, house prices increased 36 percent. In line with IO loans fueling house price appreciation by lowering debt-service payments, results show higher IO loan uptake and house price growth in areas with greater ex-ante benefits of such mortgages.