05849oam 22013094 450 991080716700332120240402050149.01-4623-0535-01-4527-9953-91-4518-6967-397866128406161-282-84061-4(CKB)3170000000055015(EBL)1607851(SSID)ssj0000944006(PQKBManifestationID)11501262(PQKBTitleCode)TC0000944006(PQKBWorkID)10982725(PQKB)11579526(OCoLC)815741252(IMF)WPIEE2008106(MiAaPQ)EBC1607851(EXLCZ)99317000000005501520020129d2008 uf 0engur|n|---|||||txtccrCredit Booms and Lending Standards : Evidence From the Subprime Mortgage Market /Giovanni Dell'Ariccia, Luc Laeven, Deniz Igan1st ed.Washington, D.C. :International Monetary Fund,2008.1 online resource (39 p.)IMF Working PapersIMF working paper ;WP/08/106Description based upon print version of record.1-4519-1421-0 Includes bibliographical references.Contents; I. Introduction; II. Related Literature; III. Data and Descriptive Statistics; IV. Empirical Methodology; V. Empirical Findings; A. Effects of Changes in the Pool of Applicant Borrowers; B. Identification and Robustness Issues; C. Sensitivity Analysis: Time and Size Effects; D. Effects of Entry and Changes in Market Structure; E. Alternative Proxies for Lending Standards; F. Effects of Loan Sales; VI. Discussion and Conclusions; References; Tables; 1. Coverage in HMDA; 2. Definitions and Sources of Variables; 3. Summary Statistics; 4. Evolution of Denial Rates5. Determinants of Denial Decision6. Prediction Errors; 7. Robustness; 8. Time and Size Effects; 9. Market and Boom Size; 10. Market Entry and Denial Rates of Incumbents in Prime and Subprime Markets; 11. Alternative Measures of Lending Standards; 12. Securitization, Lending Standards, and Mortgage Market Expansion; Figures; 1. House Prices and Credit Booms; 2. Subprime Mortgage Boom Across the Nation; 3. House Prices and Credit Boom; 4. Lending Standards and Subprime Credit BoomThis paper links the current sub-prime mortgage crisis to a decline in lending standards associated with the rapid expansion of this market. We show that lending standards declined more in areas that experienced larger credit booms and house price increases. We also find that the underlying market structure mattered, with entry of new, large lenders triggering declines in lending standards by incumbent banks. Finally, lending standards declined more in areas with higher mortgage securitization rates. The results are consistent with theoretical predictions from recent financial accelerator models based on asymmetric information, and shed light on the relationship between credit booms and financial instability.IMF Working Papers; Working Paper ;No. 2008/106CreditUnited StatesCreditUnited StatesEconometric modelsMoral hazardUnited StatesEconometric modelsMacroeconomicsimfMoney and Monetary PolicyimfReal EstateimfIndustries: Financial ServicesimfBanksimfDepository InstitutionsimfMicro Finance InstitutionsimfMortgagesimfMoney SupplyimfCreditimfMoney MultipliersimfHousing Supply and MarketsimfPersonal Income, Wealth, and Their DistributionsimfMonetary Policy, Central Banking, and the Supply of Money and Credit: GeneralimfFinanceimfProperty & real estateimfMonetary economicsimfLoansimfHousing pricesimfPersonal incomeimfCredit boomsimfFinancial institutionsimfPricesimfNational accountsimfMoneyimfHousingimfIncomeimfUnited StatesimfCreditCreditEconometric models.Moral hazardEconometric models.MacroeconomicsMoney and Monetary PolicyReal EstateIndustries: Financial ServicesBanksDepository InstitutionsMicro Finance InstitutionsMortgagesMoney SupplyCreditMoney MultipliersHousing Supply and MarketsPersonal Income, Wealth, and Their DistributionsMonetary Policy, Central Banking, and the Supply of Money and Credit: GeneralFinanceProperty & real estateMonetary economicsLoansHousing pricesPersonal incomeCredit boomsFinancial institutionsPricesNational accountsMoneyHousingIncome332.70973Dell'Ariccia Giovanni283573Laeven Luc1593549Igan Deniz1099130DcWaIMFBOOK9910807167003321Credit Booms and Lending Standards4114019UNINA