The Contagion Effect of Neighboring Foreclosures
成果类型：
Article
署名作者：
Towe, Charles; Lawley, Chad
署名单位：
University System of Maryland; University of Maryland College Park; University System of Maryland; University of Maryland College Park; University of Manitoba
刊物名称：
AMERICAN ECONOMIC JOURNAL-ECONOMIC POLICY
ISSN/ISSBN：
1945-7731
DOI：
10.1257/pol.5.2.313
发表日期：
2013
页码：
313-335
关键词：
摘要：
We examine the contagion effect of residential foreclosures and find strong evidence of a social interactions influence on default decisions where the interaction is based on neighbors' behavior in a previous period. Using a unique spatially explicit parcel-level dataset documenting residential foreclosures in Maryland for the years 2006-2009 and a highly localized neighborhood definition, based on 13 nearest neighbors, we find that a neighbor in foreclosure increases the hazard of additional defaults by 18 percent. This feedback effect goes beyond a temporary reduction in local house prices and implies a negative social multiplier effect of foreclosures.
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