Using a unique data set of 81,943 house value estimates by the homeowners and their financial institution, I find that homeowners overestimate their house value by 3.1%. After controlling for homeowners' socioeconomic characteristics, I find that ex ante homeowners who rate (cash-out) refinance an existing loan to increase savings (consumption) are significantly more likely to underestimate (overestimate) their house value. Moreover, overestimators (underestimators) are more likely to increase (reduce) their spending ex post . Finally, I also find that underestimators are more likely to prepay their loans and overestimators are more likely to default on their loans. 相似文献
We measure the effect of a 2006 antipredatory pilot program in Chicago on mortgage default rates to test whether predatory lending was a key element in fueling the subprime crisis. Under the program, risky borrowers or risky mortgage contracts or both triggered review sessions by housing counselors who shared their findings with the state regulator. The pilot program cut market activity in half, largely through the exit of lenders specializing in risky loans and through a decline in the share of subprime borrowers. Our results suggest that predatory lending practices contributed to high mortgage default rates among subprime borrowers, raising them by about a third. 相似文献
Within the corporate social responsibility (CSR) research field, the construct of organizational reputation has been extensively scrutinized as a crucial mediator between the firm CSR engagement and valuable organizational outcomes. Yet, the existing literature on organizational reputation suffers from substantive divergence between the studies in terms of defining the construct’s domain, dimensional structure, and the methodological operationalization. The current study aims to refine the organizational reputation construct by reconciling varying theoretical perspectives within the construct’s definitional landscape, suggesting a holistic but parsimonious triadic view on the organizational reputation construct for customer stakeholders. Based on commonly used extant organizational reputation measures, we theoretically and empirically develop the customer-based triadic organizational reputation (TOR) scale and position it as a superordinate multidimensional construct (generalized favorability) influencing three distinct first-order dimensions: product and service efficacy, societal ethicality, and market prominence. Results show that the proposed triadic conceptualization of organizational reputation is theoretically defensible, and the resulting scale is cross-culturally generalizable and performs well compared with existing, longer measures of organizational reputation. Together, the organizational reputation model developed here suggests that, for cognitive economy and functional efficiency, customers will access a second-order reflective model of organizational reputation as the default implicit attitude (reputation as assessment), which in turn will activate reflections of the implicit attitude in the form of first-order dimensions (reputation as asset). 相似文献
This paper applies an endogenous institutionalist framework to understand the evolution of the rules-based international trading system since the end of World War II. We argue that the initial success of the General Agreement on Trade and Tariffs and re-enforcement that led to the formation of the WTO can be explained by three major factors: the hegemonic position of the US, the belief that international trade would foster prosperity and peace, and Cold War politics. However, declining US hegemony along with a shift in global comparative advantage in labor-intensive manufacturing led to a shift from multilateral towards preferential trade agreements since the 1990s. Today, the WTO faces several new challenges, including increasing geo-political competition between the US and China, increasing digitization of commerce, and disrupted supply chains following COVID-19. A functioning WTO that facilitates global economic re-integration remains crucial to ensure a strong recovery from the pandemic and continued long-term prosperity and stability of the global economy. 相似文献
This paper examines whether and how street name fluency affects housing prices using a rich sample of housing transactions in Sydney, Australia. We find street names with longer words are preferred, i.e., homes on street names with more letters are priced with a 0.6% premium. Homes with unique street names are sold 1.6% (or A$10,835) higher than those with more common names, implying disfluency and uniqueness preference. Moreover, homes with less fluent street names are valued more conditional on the street name is rare or the home is in the luxury price range. This is consistent with the consumption context effect in the psychology literature that in the context of special occasion high-end goods, lower fluency and grater uniqueness makes the products feel more desirable and valuable.
While we show disfluency preference on aggregate, we also find evidence of fluency preference by non-English speaking buyers and for new developments. Preferences for royal names or popular words proxied by Google Trends are also documented. Overall, our findings shed light on understanding how name fluency affects the investment decision of special occasion goods such as real estate.
This article explores the different pricing strategies of lenders who originate both government-sponsored enterprise (GSE) and non-GSE loans. We find that conditional on loan and borrower characteristics and some observable local economic factors, mortgage rates on GSE loans vary significantly across regions. However, we observe no sizable regional variation in loan amounts or default risk. By contrast, the mortgage rates on non-GSE loans depend almost entirely on borrowers and loan characteristics. In addition, we find that spatial variations in GSE mortgage rates are highly responsive to regional prepayment risk. Our results are robust to various controls for neighborhood characteristics, including regional-level bank competition, borrower accessibility to mortgages, and household income levels. Overall, the findings offer a novel insight into how lenders adjust pricing strategies in response to a changing lending environment. The results provide implications relating to the present and imminent dangers of housing bubbles and the intensified refinancing wave following the COVID-19 pandemic. 相似文献