Advanced Search
MyIDEAS: Login to save this article or follow this journal

Non-recourse mortgages and credit market breakdowns: a framework for policy analysis

Contents:

Author Info

  • Kaushik Basu

Abstract

This article illustrates that the legal structure of mortgage credit, in particular its status in terms of recourse in foreclosure, can lead not only to the familiar problem of adverse selection but multiple equilibria in the credit market with the possibility of a small exogenous shock leading to a major breakdown in the credit market with the supply of credit drying up. As such, it tries to shed light on the recent sub-prime crisis; and suggests lessons for emerging economies drafting regulation for modern financial markets so as to prevent meltdowns.

Download Info

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
File URL: http://www.tandfonline.com/doi/abs/10.1080/17520843.2010.529634
Download Restriction: Access to full text is restricted to subscribers.

As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.

Bibliographic Info

Article provided by Taylor & Francis Journals in its journal Macroeconomics and Finance in Emerging Market Economies.

Volume (Year): 4 (2011)
Issue (Month): 1 ()
Pages: 1-8

as in new window
Handle: RePEc:taf:macfem:v:4:y:2011:i:1:p:1-8

Contact details of provider:
Web page: http://www.tandfonline.com/REME20

Order Information:
Web: http://www.tandfonline.com/pricing/journal/REME20

Related research

Keywords: mortgage; non-recourse loans; foreclosure rules; limited liability; financial crisis;

References

No references listed on IDEAS
You can help add them by filling out this form.

Citations

Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
as in new window

Cited by:
  1. Kaushik Basu, 2011. "A simple model of the financial crisis of 2007-2009, with implications for the design of a stimulus package," Indian Growth and Development Review, Emerald Group Publishing, vol. 4(1), pages 5-21, April.

Lists

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

Statistics

Access and download statistics

Corrections

When requesting a correction, please mention this item's handle: RePEc:taf:macfem:v:4:y:2011:i:1:p:1-8. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Michael McNulty).

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.