A Fistful of Dollars : Lobbying and the Financial Crisis /

Using detailed information on lobbying and mortgage lending activities, we find that lenders lobbying more on issues related to mortgage lending (i) had higher loan-to-income ratios, (ii) securitized more intensively, and (iii) had faster growing portfolios. Ex-post, delinquency rates are higher in...

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מידע ביבליוגרפי
מחבר ראשי: Igan, Deniz
מחברים אחרים: Mishra, Prachi, Tressel, Thierry
פורמט: כתב-עת
שפה:English
יצא לאור: Washington, D.C. : International Monetary Fund, 2009.
סדרה:IMF Working Papers; Working Paper ; No. 2009/287
גישה מקוונת:Full text available on IMF
תיאור
סיכום:Using detailed information on lobbying and mortgage lending activities, we find that lenders lobbying more on issues related to mortgage lending (i) had higher loan-to-income ratios, (ii) securitized more intensively, and (iii) had faster growing portfolios. Ex-post, delinquency rates are higher in areas where lobbyist' lending grew faster and they experienced negative abnormal stock returns during key crisis events. The findings are robust to (i) falsification tests using lobbying on issues unrelated to mortgage lending, (ii) a difference-in-difference approach based on state-level laws, and (iii) instrumental variables strategies. These results show that lobbying lenders engage in riskier lending.
תאור פריט:<strong>Off-Campus Access:</strong> No User ID or Password Required
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תיאור פיזי:1 online resource (71 pages)
פורמט:Mode of access: Internet
ISSN:1018-5941
גישה:Electronic access restricted to authorized BRAC University faculty, staff and students