Foreclosures, House Prices, and the Real Economy

• 成果类型: Article
• 署名作者: Mian, Atif; Sufi, Amir; Trebbi, Francesco
• 署名单位: Princeton University; National Bureau of Economic Research; University of Chicago; University of British Columbia; Canadian Institute for Advanced Research (CIFAR)
• 刊物名称: JOURNAL OF FINANCE
• ISSN/ISSBN: 0022-1082
• DOI: 10.1111/jofi.12310
• 发表日期: 2015
• 页码: 2587-2634
• 关键词: LIQUIDATION VALUES; equity; sales

摘要

From 2007 to 2009, states without a judicial requirement for foreclosures were twice as likely to foreclose on delinquent homeowners. Analysis of borders of states with differing foreclosure laws reveals a discrete jump in foreclosure propensity as one enters nonjudicial states. Using state judicial requirement as an instrument for foreclosures, we show that foreclosures led to a large decline in house prices, residential investment, and consumer demand from 2007 to 2009. As foreclosures subsided from 2011 to 2013, the foreclosure rates in nonjudicial and judicial requirement states converged and we find some evidence of a stronger recovery in nonjudicial states.