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Florian OSWALD publishes a paper in the Journal of Urban Economics


Florian OSWALD

Florian OSWALD and co-author Wenli LI have published an article in the specialized Journal of Urban Economics entitled:

Recourse and residential mortgages: The case of Nevada (link to PDF)

Florian OSWALD, is Assistant Professor of Economics (tenure track) at the Department since 2015.  He joined the Department after he was awarded his PhD at University College London.

PRIMARY RESEARCH FIELDS

- Applied Micro;
- Housing; Macro;
- Structural Labor

He is also interested in structural estimation of microeconometric models and associated computational techniques.

Abstract:
"The state of Nevada passed legislation in 2009 that abolished deficiency judgments for purchase mortgage loans made after October 1, 2009, and collateralized by primary single-family homes. In this paper, we study how this change in the law affected equilibrium mortgage lending. Using unique mortgage loan-level application data and a difference-in-differences approach that exploits the qualification criterion, we find that the law change led to a decline in equilibrium loan sizes of about 1 to 2 percent. There exists some evidence that mortgage approval rates also decreased for the affected loan applications. These results suggest that making the deficiency judgment law more default friendly in Nevada generated material cost on borrowers at the time of mortgage origination."

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