• Publications
  • Influence
Credit Supply and the Price of Housing
An exogenous expansion in mortgage credit has significant effects on house prices. This finding is established using US branching deregulations between 1994 and 2005 as instruments for credit. CreditExpand
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An Empirical Reassessment of the Relationship between Finance and Growth
This paper reexamines the empirical relationship between financial development and economic growth. It presents evidence based on cross-section and panel data using an updated dataset, a variety ofExpand
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Strategic default and equity risk across countries
We show that the prospect of a debt renegotiation favorable to shareholders reduces the firm's equity risk. Equity beta and return volatility are lower in countries where the bankruptcy code favorsExpand
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Credit Supply and the Price of Housing ∗ Giovanni Favara
We show that since 1994, branching deregulations in the U.S have significantly affected the supply of mortgage credit originated by banks, and ultimately house prices. But the deregulation has noExpand
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Externalities and Macroprudential Policy
This note overviews macroprudential policy options that have been proposed to address the systemic risks experienced during the recent financial crisis. It contributes to the policy debate byExpand
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Reconsidering the Role of Money for Output, Prices and Interest Rates
New Keynesian models of monetary policy predict no role for monetary aggregates, in the sense that the level of output, prices, and interest rates can be determined without knowledge of the quantityExpand
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Debt Enforcement, Investment, and Risk Taking Across Countries
We argue that the prospect of an imperfect enforcement of debt contracts in default reduces shareholder-debtholder conflicts and induces leveraged firms to invest more and take on less risk as theyExpand
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Reconsidering the Role of Money for Output, Prices and Interest Rates
New Keynesian models of monetary policy assign no role to monetary aggregates, in the sense that the level of output, prices, and interest rates can be determined without knowledge of the quantity ofExpand
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Forced Asset Sales and the Concentration of Outstanding Debt: Evidence from the Mortgage Market
We provide evidence that lenders differ in their ex post incentives to internalize price-default externalities associated with the liquidation of collateralized debt. Using the mortgage market as aExpand
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Updating the Recession Risk and the Excess Bond Premium
Beginning with the publication of this Note, we will provide updated estimates of the EBP and the associated model-implied probability of a U.S. recession every month.
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