Bank Competition Risk Taking And Their Consequences Evidence From The Us Mortgage And Labor Markets
Download and Read Bank Competition Risk Taking And Their Consequences Evidence From The Us Mortgage And Labor Markets full books in PDF, ePUB, and Kindle. Read online free Bank Competition Risk Taking And Their Consequences Evidence From The Us Mortgage And Labor Markets ebook anywhere anytime directly on your device. We cannot guarantee that every ebooks is available!
Bank Competition, Risk Taking, and their Consequences: Evidence from the U.S. Mortgage and Labor Markets
Author | : Alan Xiaochen Feng |
Publisher | : International Monetary Fund |
Total Pages | : 46 |
Release | : 2018-07-06 |
Genre | : Business & Economics |
ISBN | : 1484364023 |
Download Bank Competition, Risk Taking, and their Consequences: Evidence from the U.S. Mortgage and Labor Markets Book in PDF, Epub and Kindle
Bank competition can induce excessive risk taking due to risk shifting. This paper tests this hypothesis using micro-level U.S. mortgage data by exploiting the exogenous variation in local house price volatility. The paper finds that, in response to high expected house price volatility, banks in U.S. counties with a competitive mortgage market lowered lending standards by twice as much as those with concentrated markets between 2000 and 2005. Such risk taking pattern was associated with real economic outcomes during the financial crisis, including higher unemployment rates in local real sectors.
Bank Competition, Risk Taking, and their Consequences: Evidence from the U.S. Mortgage and Labor Markets Related Books
Pages: 46
Pages: 51
Pages: 25
Pages: 41
Pages: 42