Is there a link between the availability of aggressive home loan lending and the price of homes? In a paper presented at the Far East and South Asian Meeting of the Econometric Society 2008, hosted by the Singapore Management University, Wharton professors Susan Wachter and Andrey Pavlov show that it is the fluctuation in the use of aggressive instruments which exacerbates the market downturns, and not the fact that such instruments generate higher default rates.
Business | Real Estate
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Copyright © Singapore Management University 2012
Subprime Lending: Did it Lead to the Real Estate Boom and Bust?. (2008). Knowledge@SMU.
Available at: http://ink.library.smu.edu.sg/ksmu/350