Modeling a Housing and Mortgage Crisis

Charles A.E. Goodhart, Dimitrios Tsomocos and Alexandros P. Vardoulakis

Working Papers Central Bank of Chile from Central Bank of Chile

Abstract: The purpose of this paper is to explore financial instability in this case due to a housing crisis and defaults on mortgages. The model incorporates heterogeneous banks and households. Mortgages are secured by collateral, which is equal to the amount of housing which agents purchase. Individual default is spread through the economy via the interbank market. Several comparative statistics illustrate the directional effects of a variety of shocks in the economy.

Date: 2009-12
References: Add references at CitEc
Citations:

Downloads: (external link)
https://www.bcentral.cl/documents/33528/133326/DTBC_547.pdf (application/pdf)

Related works:
Chapter: Modeling a Housing and Mortgage Crisis (2011)
Working Paper: Modelling a Housing and Mortgage Crisis (2010)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:chb:bcchwp:547

Access Statistics for this paper

More papers in Working Papers Central Bank of Chile from Central Bank of Chile Contact information at EDIRC.
Bibliographic data for series maintained by Alvaro Castillo ().