The Impact of Deregulation and Financial Innovation on Consumers: The Case of the Mortgage Market

• 成果类型: Article
• 署名作者: Gerardi, Kristopher S.; Rosen, Harvey S.; Willen, Paul S.
• 署名单位: Federal Reserve System - USA; Federal Reserve Bank - Atlanta; Princeton University; Federal Reserve System - USA; Federal Reserve Bank - Boston
• 刊物名称: JOURNAL OF FINANCE
• ISSN/ISSBN: 0022-1082
• DOI: 10.1111/j.1540-6261.2009.01531.x
• 发表日期: 2010
• 页码: 333-360
• 关键词: integration; consumption

摘要

We develop a technique to assess the impact of changes in mortgage markets on households, exploiting an implication of the permanent income hypothesis: The higher a household's expected future income, the higher its desired consumption, ceteris paribus. With perfect credit markets, desired consumption matches actual consumption and current spending forecasts future income. Because credit market imperfections mute this effect, the extent to which house spending predicts future income measures the imperfectness of mortgage markets. Using micro-data, we find that since the early 1980s, mortgage markets have become less imperfect in this sense, and securitization has played an important role.