How does debt affect macroeconomic stability? The answer to this question has important
implications, because both public and private debt levels have reached historic highs across …

Innovations in statistical technology in functions including credit‐screening have raised
concerns about distributional impacts across categories such as race. Theoretically …

The responsiveness of aggregate expenditure to shocks depends on the level and interest
rate sensitivity (duration) of household debt, as well as on the liquidity of the assets it …

This paper develops the building blocks for a legal theory of finance. LTF holds that financial
markets are legally constructed and as such occupy an essentially hybrid place between …

We study the relationship between homebuyers' beliefs about future house price changes
and their mortgage leverage choices. Whether more pessimistic homebuyers choose higher …

In this paper, we solve a dynamic model of households' mortgage decisions incorporating
labor income, house price, inflation, and interest rate risk. Using a zero‐profit condition for …

We use survey data to measure households' propensity to default on mortgages even if they
can afford to pay them (strategic default) when the value of the mortgage exceeds the value …

How much of the foreclosure crisis can be explained by the large number of high-leverage
mortgages originated during the housing boom? In our model, heterogeneous households …

We analyze whether midlevel managers in securitized finance were aware of a large-scale
housing bubble and a looming crisis in 2004–2006 using their personal home transaction …

This article explores the causes and consequences of cross-country variation in mortgage
market structure. It draws on insights from several fields: urban economics, asset pricing …