Erschienen:
Cambridge, Mass: National Bureau of Economic Research, March 1997
Erschienen in:NBER working paper series ; no. w5961
Umfang:
1 Online-Ressource
Sprache:
Englisch
DOI:
10.3386/w5961
Identifikator:
Reproduktionsnotiz:
Hardcopy version available to institutional subscribers
Entstehung:
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Beschreibung:
In this paper, we use city-level data to analyze the relationship between homeowner borrowing patterns and house-price dynamics. Our principal finding is that in cities where homeowners are more leveraged--i.e., have higher loan-to-value ratios--house prices react more sensitively to city-specific shocks, such as changes in per-capita income. This finding is consistent with recent theories which emphasize the role of collateralized borrowing in shaping the behavior of asset prices