Judge Dread: Court severity, repossession risk and demand in mortgage and housing markets

• 成果类型: Article
• 署名作者: Montebruno, Piero; Silva, Olmo; Szumilo, Nikodem
• 署名单位: University of London; London School Economics & Political Science; University of London; University College London
• 刊物名称: ECONOMIC JOURNAL
• ISSN/ISSBN: 0013-0133
• DOI: 10.1093/ej/ueaf006
• 发表日期: 2025
• 页码: 1677-1710
• 关键词: personal bankruptcy; consumer bankruptcy; credit; default; REFORM; possession; LAW; CONSEQUENCES; ENFORCEMENT; opportunity

摘要

We study the impact of borrower protection on mortgage and housing demand using variation in the likelihood that houses are repossessed coming from heterogeneity in preferences of local judges. We develop a framework that provides conditions to identify the impact of repossession risk on housing and credit demand, holding supply fixed. Empirically, we exploit exogenous variation in risk created by boundaries of court catchment areas. We find that a one-standard-deviation decrease in borrower protection decreases borrowing and house prices by 4.5%.