Collateral Damage: The Impact of Foreclosures on New Home Mortgage Lending in the 1930s

• 成果类型: Article
• 署名作者: University of Arizona; National Bureau of Economic Research; KU Leuven; KU Leuven; Federal Reserve System - USA; Federal Reserve Bank - Chicago; University of North Carolina; University of North Carolina Greensboro; National Bureau of Economic Research; University of North Carolina; University of North Carolina Greensboro
• 刊物名称: JOURNAL OF ECONOMIC HISTORY
• ISSN/ISSBN: 0022-0507
• DOI: 10.1017/S0022050720000352
• 发表日期: 2020
• 页码: 853-885
• 关键词: great-depression; Banking panics; new-deal; CRISIS; contagion; RECOVERY; securitization; expectations; failures

摘要

The Great Depression of the 1930s involved a severe disruption in the supply of home mortgage credit. This paper empirically identifies a mechanism lying behind this credit crunch: the impairment of lenders' balance sheets by illiquid foreclosed real estate. With data on hundreds of building and loans (B&Ls), the leading mortgage lenders in this period, we find that the overhang of foreclosed real estate explains about 30 percent of the drop in new lending between 1930 and 1935.