scholarly journals Regional Redistribution through the US Mortgage Market

2016 ◽  
Vol 106 (10) ◽  
pp. 2982-3028 ◽  
Author(s):  
Erik Hurst ◽  
Benjamin J. Keys ◽  
Amit Seru ◽  
Joseph Vavra

Regional shocks are an important feature of the US economy. Households' ability to self-insure against these shocks depends on how they affect local interest rates. In the United States, most borrowing occurs through the mortgage market and is influenced by the presence of government-sponsored enterprises (GSE). We establish that despite large regional variation in predictable default risk, GSE mortgage rates for otherwise identical loans do not vary spatially. In contrast, the private market does set interest rates which vary with local risk. We use a spatial model of collateralized borrowing to show that the national interest rate policy substantially affects welfare by redistributing resources across regions. (JEL E32, E43, G21, G28, L32, R11, R31)

2014 ◽  
Vol 3 (4) ◽  
pp. 59
Author(s):  
Selcuk KENDIRLI ◽  
Sedat KUSGOZOGLU ◽  
M. Sakir BASARAN

In this study we examine the impacts of expansionary monetary policies executed by the Federal Reserve on poverty in the United States of America. It has been discussed in various studies that the Fed’s expansionary monetary policies create a less positive impact on economy as a whole than financial sector. In this study, the expansionary effects of expansionary policies on the poor living in America will be discussed. The main thesis of the study is that the poor living in the United States benefited less from expansionary monetary policies than either financial sector or the US economy as a whole. When discussing the thesis of the study both employed and unemployed poor will be discussed. Therefore, it will be questioned that the decrease in the unemployment rate is the indicator of the fight against poverty.Indicators such as indices and interest rates in the financial markets, and indicators such as growth rates and unemployment rates in the overall economy are regarded as essential indicators but as for poverty it’s hard to find such regarded indicators. Unfortunately, there are not too many statistics about the poor living in the United States in the reports of the international organizations. Thus the main trouble of the study is that international comparisons are almost impossible. Therefore, various indicators produced by the U.S. government agencies of various indicators will be used in this study.


Author(s):  
Lance Taylor

Historically, financial crises have been commonplace. Why did the latest episode almost derail the world economy? The macroeconomics developed by John Maynard Keynes and his close followers provides the only plausible set of answers, including rising income inequality that spilled over into debt accumulation at the same time as household consumption rose, low real interest rates, massive expansion of financial assets and liabilities as investors borrowed heavily (increased leverage) to buy assets with rising prices, and an ample supply of imports and capital inflows from the rest of the world to the United States. In an accommodating political economy environment these factors linked the real and financial sides of the US economy to create the crisis.


2012 ◽  
Vol 03 (03) ◽  
pp. 1250020 ◽  
Author(s):  
KARLA BORJA

The United States (US) economic recession has considerably affected employment among its immigrant Hispanic community, and as a consequence, remittances to Central America have plunged more than in any other region in the world. This paper provides evidence that the US housing crisis and the subsequent economic recession have affected the Central American region's Gross Domestic Product (GDP) beyond the traditional means of exports, exchange rates, and interest rates, namely, through remittances as well. Using a Vector Autoregression (VAR) model, we examine the case of El Salvador and find that major disturbances to the US economy have an immediate and substantial impact on remittances to this Central American nation.


2021 ◽  
pp. 048661342098262
Author(s):  
Tyler Saxon

In the United States, the military is the primary channel through which many are able to obtain supports traditionally provided by the welfare state, such as access to higher education, job training, employment, health care, and so on. However, due to the nature of the military as a highly gendered institution, these social welfare functions are not as accessible for women as they are for men. This amounts to a highly gender-biased state spending pattern that subsidizes substantially more human capital development for men than for women, effectively reinforcing women’s subordinate status in the US economy. JEL classification: B54, B52, Z13


2020 ◽  
Vol 26 (3) ◽  
Author(s):  
Linda J. Bilmes

AbstractThe United States has traditionally defined national security in the context of military threats and addressed them through military spending. This article considers whether the United States will rethink this mindset following the disruption of the Covid19 pandemic, during which a non-military actor has inflicted widespread harm. The author argues that the US will not redefine national security explicitly due to the importance of the military in the US economy and the bipartisan trend toward growing the military budget since 2001. However, the pandemic has opened the floodgates with respect to federal spending. This shift will enable the next administration to allocate greater resources to non-military threats such as climate change and emerging diseases, even as it continues to increase defense spending to address traditionally defined military threats such as hypersonics and cyberterrorism.


Author(s):  
Alexander Zhebin

The article analyzes the prospects for US-North Korean and inter-Korean relations, taking into account the completed policy review of the new US administration towards the Democratic People's Republic of Korea (DPRK), as well as the results of the President of the Republic of Korea Moon Jae-in’s trip to Washington in May 2021 and his talks with US President Joe Biden. It is concluded that the “new" course proposed by the United States in relation to the DPRK will not lead to a solution to the nuclear problem of the Korean Peninsula and will interfere with the normalization of inter-Korean relations. During his visit to the US President Moon failed to obtain the US consent on ROK more “independent policy” toward North Korea. In spite of lavish investments into US economy and other concessions, Seoul was forced to promise to coordinate his approaches to the DPRK with US and Japan and support US position on Taiwan straits and South China Sea. The author argues that in the current conditions, the introduction of a regime of arms limitation and arms control in Korea should be a necessary stage on the way to complete denuclearization of the peninsula. The transition to a such method of the settlement of the nuclear problem could lead to the resumption of the negotiation process, mutual concessions, including reductions in the level of military-political confrontation, partial or large-scale lifting of economic sanctions in exchange for North Korea's restrictions of its nuclear weapon and missile systems.


2014 ◽  
Vol 73 (3) ◽  
pp. 267-276 ◽  
Author(s):  
Susan Greenhalgh ◽  
Megan Carney

For years now, the United States has faced an "obesity epidemic" that, according to the dominant narrative, is harming the nation by worsening the health burden, raising health costs, and undermining productivity. Much of the responsibility is laid at the foot of Blacks and Latinos, who have higher levels of obesity. Latinos have provoked particular concern because of their rising numbers. Michelle Obama's Let's Move! Campaign is now targeting Latinos. Like the national anti-obesity campaign, it locates the problem in ignorance and calls on the Latino community to "own" the issue and take personal responsibility by embracing healthier beliefs and behaviors. In this article, we argue that this dominant approach to obesity is misguided and damaging because it ignores the political-economic sources of Latino obesity and the political-moral dynamics of biocitizenship in which the issue is playing out. Drawing on two sets of ethnographic data on Latino immigrants and United States-born Latinos in southern California, we show that Latinos already "own" the obesity issue; far from being "ignorant," they are fully aware of the importance of a healthy diet, exercise, and normal weight. What prevents them from becoming properly thin, fit biocitizens are structural barriers associated with migration and assimilation into the low-wage sector of the US economy. Failure to attain the normative body has led them to internalize the identity of bad citizens, assume personal responsibility for their failure, naturalize the conditions for this failure, and feel that they deserve this fate. We argue that the blaming of minorities for the obesity epidemic constitutes a form of symbolic violence that furthers what Berlant calls the "slow death" of structurally vulnerable populations, even as it deepens their health risks by failing to address the fundamental sources of their higher weights.


2018 ◽  
Vol 23 (3) ◽  
pp. 1074-1101
Author(s):  
Alessandro Barattieri ◽  
Maya Eden ◽  
Dalibor Stevanovic

We present a stylized model that illustrates how interbank trading can reduce the sensitivity of lending to entrepreneurs' net worth, thus affecting the transmission mechanism of monetary policy through the credit channel. We build a model-consistent measure of interconnectedness and document that, in the United States, this measure has increased substantially during the period 1952–2016. Finally, interacting the measure of interconnectedness in a structural vector autoregression and a factor-augmented vector autoregression for the US economy, we find that the impulse responses of several real and financial variables to monetary policy shocks are dampened as interconnectedness increases. We confirm the same result using data from 10 Euro area countries for the period 1999–2016.


2012 ◽  
Vol 45 (04) ◽  
pp. 596-604 ◽  
Author(s):  
Mark Zachary Taylor

AbstractHow relatively good or bad were the economic performances of our past presidents? The answers to this question remain unclear. Most evaluations of presidential performance cloud the issue with partisan bias and subjective judgments or mix economics together with other policy areas. To address these shortcomings, this article uses new data from the Measuring Worth Project to calculate the relative economic rankings of the United States presidents who served from 1789 until 2009. It analyzes up to 220 years of data on economic growth, unemployment, inflation, government debt, balance of payments, income inequality, currency strength, interest rates, and stock market returns to estimate an economic grade point average for each president. Then, these estimates are used to test for correlations with other variables to generate hypotheses regarding the conditions for superior and inferior economic performance.


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