A Quantitative Analysis of the US Housing and Mortgage Markets and the Foreclosure Crisis 1 Satyajit

@inproceedings{Chatterjee2011AQA,
  title={A Quantitative Analysis of the US Housing and Mortgage Markets and the Foreclosure Crisis 1 Satyajit},
  author={Satyajit Chatterjee and Burcu Eyigungor},
  year={2011}
}
We construct a quantitative equilibrium model of the housing sector that accounts for the homeownership rate, the average foreclosure rate, and the distribution of home-equity ratios across homeowners prior to the recent boom and bust in the housing market. We analyze the key mechanisms that account for these facts, including the preferential tax treatment… CONTINUE READING