Open Access. Powered by Scholars. Published by Universities.®
Articles 1 - 1 of 1
Full-Text Articles in Business
Bank Lending Channel And Changing Credit Standards In The Residential Mortgage Market, Salman Tahsin
Bank Lending Channel And Changing Credit Standards In The Residential Mortgage Market, Salman Tahsin
Graduate Theses and Dissertations
My dissertation examines the relationship between bank conditions and the residential mortgage market. The first essay investigates the effect of bank distress on the residential mortgage market during the 2007-09 financial crisis. We use the county-aggregated change in the ratio of jumbo to nonjumbo mortgage acceptance rate as an instrumental variable to control for endogeneity between bank distress and county economic conditions. The median decrease in the instrumental variable explains an additional 1.5 percentage point decline in county home prices and a 20 basis point rise in the county unemployment rate, which represent 15% and 5%, respectively, of their median …