scholarly journals Liquidity Constraints in the U.S. Housing Market

2017 ◽  
Author(s):  
Corina Boar ◽  
Denis Gorea ◽  
Virgiliu Midrigan
Keyword(s):  
Housing Market ◽  
Liquidity Constraints ◽  
The U.S

scholarly journals Liquidity Constraints in the U.S. Housing Market

2021 ◽  
Author(s):  
Corina Boar ◽  
Denis Gorea ◽  
Virgiliu Midrigan
Keyword(s):  
Life Cycle ◽  
Housing Market ◽  
Liquidity Constraints ◽  
Life Cycle Model ◽  
Cycle Model ◽  
Home Equity ◽  
Welfare Gains ◽  
The U.S

Abstract We study the severity of liquidity constraints in the U.S. housing market using a life-cycle model with uninsurable idiosyncratic risks in which houses are illiquid, but agents can extract home equity by refinancing their mortgages. The model implies that four-fifths of homeowners are liquidity constrained and willing to pay an average of 13 cents to extract an additional dollar of liquidity from their home. Most homeowners value liquidity for precautionary reasons, anticipating the possibility of income declines and the need to make mortgage payments. The model reproduces well the observed response of consumption to tax rebates and mortgage relief programs and predicts large welfare gains from policies aimed at providing temporary liquidity relief to homeowners.

Chasing Trends in the U.S. Housing Market

2011 ◽  
Author(s):  
Roy R. P. Kouwenberg ◽  
Remco C. J. Zwinkels
Keyword(s):  
Housing Market ◽  
The U.S

scholarly journals The Impact of the COVID-19 Pandemic on the Demand for Density: Evidence from the U.S. Housing Market

2020 ◽  
Vol 2020 (2024) ◽  
Author(s):  
Sitian Liu ◽  
◽  
Yichen Su ◽  
Keyword(s):  
Housing Market ◽  
The Impact ◽  
The U.S

scholarly journals Origins and Resolution of Financial Crises: Lessons from the Current and Northern European Crises

2009 ◽  
Vol 8 (3) ◽  
pp. 178-220 ◽  
Author(s):  
Finn Østrup ◽  
Lars Oxelheim ◽  
Clas Wihlborg
Keyword(s):  
Financial Crisis ◽  
Housing Market ◽  
Political Institutions ◽  
Financial Crises ◽  
World Economy ◽  
Credit Crunch ◽  
Original Strain ◽  
Northern European ◽  
The World ◽  
The U.S

Since July 2007, the world economy has experienced a severe financial crisis that originated in the U.S. housing market. Subsequently, the crisis has spread to financial sectors in European and Asian economies and led to a severe worldwide recession. The existing literature on financial crises rarely distinguishes between factors that create the original strain on the financial sector and factors that explain why these strains lead to system-wide contagion and a possible credit crunch. Most of the literature on financial crises refers to factors that cause an original disruption in the financial system. We argue that a financial crisis with its contagion within the system is caused by failures of legal, regulatory, and political institutions.

Predatory Inclusion

2019 ◽  
pp. 253-262
Author(s):  
Keeanga-Yamahtta Taylor
Keyword(s):  
African Americans ◽  
Real Estate ◽  
Housing Market ◽  
Black People ◽  
Home Ownership ◽  
Rental Market ◽  
American Society ◽  
The U.S

Homeownership in the U.S. is often touted as a means to escape poverty, build wealth, and fully participate in American society. However, racism in the broader American society ultimately resulted in a racist housing market that excludes Black people from homeownership and depresses the value of property inhabited by African Americans. The perception that Black buyers are risky has continued to fuel predatory practices in real estate. The author notes that African Americans should not be limited to the rental market because of inequality in the housing market. Instead, she suggests people should question American society, a society in which full citizenship is reliant upon home ownership.

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