Structuring Mortgages for Macroeconomic Stability
نویسندگان
چکیده
We study mortgage design features aimed at stabilizing the macroeconomy. model overlapping generations of borrowers and an infinitely lived risk-averse representative lender. Mortgages are priced using equilibrium pricing kernel derived from lender's endogenous consumption. consider adjustable-rate with option that during recessions allows to pay only interest on their loan extend its maturity. The stabilizes consumption growth over business cycle, shifts defaults expansions, enhances welfare. cyclical properties contract attractive a lender so can be provided relatively low cost.
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ژورنال
عنوان ژورنال: Journal of Finance
سال: 2021
ISSN: ['0022-1082', '1540-6261']
DOI: https://doi.org/10.1111/jofi.13056