Foreclosure Spillovers within broad Neighborhoods

Weiran Huang, Ashlyn Nelson and Stephen Ross

No 28851, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: Most evidence on foreclosure spillovers identifies localized effects that are modest in magnitude, but these effects could multiply to larger aggregate effects across broad neighborhoods. We test this proposition developing a proxy for the fraction of mortgages in negative equity during the foreclosure crisis and estimating a difference-in-differences model for foreclosure. This proxy exploits the timing of foreclosures in each tract, and this within tract variation is not predicted by mortgage attributes, housing attributes or sales prices. Our estimates suggest that 61 percent of the increase in across tract dispersion in foreclosure filings can be explained by these spillover effects.

JEL-codes: G21 R23 R32 (search for similar items in EconPapers)
Date: 2021-05
New Economics Papers: this item is included in nep-ure
Note: EFG PE
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Related works:
Working Paper: Foreclosure Spillovers within Broad Neighborhoods (2018)
Working Paper: Foreclosure Spillovers within Broad Neighborhoods (2018)
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