Credit Supply, Homeownership and Mortgage Debt

We analyse the effect of credit supply on households' homeownership status and mortgage debt, as well as other variables relating to housing costs and home equity. We demonstrate that banking deregulation as enacted by the Interstate Banking and Branching Efficiency Act (IBBEA) together with states' autonomy to set the degree and timing of deregulation provides an exogenous shift in credit supply which shows variation across states and time. We use this variation to isolate the effect of credit supply from confounding factors which could simultaneously affect credit supply and demand. Using a rich individual-level panel covering the period 1996 to 2008, and controlling for individual and region-year fixed effects, we find that a shift from full regulation to full deregulation increases the probability of owning a home by one, and of having a mortgage by two percentage points. The deregulation observed between 1990 and 2005 can explain at least one fifth, and up to 45% of the increase in homeowneship and the share of households with mortgages. For observations residing in non-metropolitan areas, we also find significant effects of deregulation on the amount of mortgage debt, reported home values, monthly mortgage payments, and debt to value as well as debt to income ratios. Most of these effects are driven by young households, and by individuals with higher incomes. Our results inform on the causes of the rise in homeownership and mortgage debt in the 1990s and 2000s which have led up to the housing crisis in the late 2000s

Homeownership and Unemployment Duration

We examine the effects of homeownership on individuals' unemployment durations in the USA. We take into account that an unemployment spell can terminate with a job or with a non-participation transition. The endogeneity of homeownership is addressed through the estimation of a full maximum likelihood function which jointly models the competing hazards and the probability of being a homeowner. Unobserved factors contributing to the probability of being a homeowner are allowed to be correlated with unobservable heterogeneity in the hazard rates. We find that unemployed homeowners are less likely to find a job than renters. The effect is small but statistically significant for most specifications. The effect is stronger for outright owners and weaker for mortgage holders. We also find that outright owners have a higher and mortgage holders a lower probability of exiting to non-participation than renters

Electron-Hole Asymmetry in GdBaCo_{2}O_{5+x}: Evidence for Spin Blockade of Electron Transport in a Correlated Electron System

In RBaCo_{2}O_{5+x} compounds (R is rare earth) variability of the oxygen content allows precise doping of CoO_2 planes with both types of charge carriers. We study transport properties of doped GdBaCo_{2}O_{5+x} single crystals and find a remarkable asymmetry in the behavior of holes and electrons doped into a parent insulator GdBaCo_{2}O_{5.5}. Doping dependences of resistivity, Hall response, and thermoelectric power reveal that the doped holes greatly improve the conductivity, while the electron-doped samples always remain poorly conducting. This doping asymmetry provides strong evidence for a spin blockade of the electron transport in RBaCo_{2}O_{5+x}.Comment: 4 pages, 5 figures, accepted for publication in PR

The role of international trade on environmental efficiency

Cataloged from PDF version of article.The relationship between trade and environmental conditions receives considerable attention whenever countries are in the process of negotiating trade agreements. In this paper using a non-parametric non-stochastic production frontier approach, we first develop an environmental efficiency index for a sample of high income and low and middle income countries and then examine the role of trade on the changes in environmental efficiency. The paper shows that, in addition to the per capita income which exhibits an environmental Kuznets type relationship, trade-related variables such as trade composition, the share of polluting exports and openness of a country are important determinants of environmental efficiency. (C) 2001 Elsevier Science B.V. All rights reserved. JEL classifications: Q32; Q25; F43

Financial Crises: Lessons from History for Today

Cataloged from PDF version of article.Making use of the propensity score matching method, we match earlier crises (pre-2007) with currently ongoing crises (post-2007). The old and new crises are matched in three dimensions: the global setting in which they occurred, the structure of the economy and the domestic vulnerabilities in the pre-crisis period. Our findings suggest that the euro periphery crises share sufficient commonalities with earlier crises in their pre-crisis domestic vulnerabilities. The study points to two important conclusions. First, the euro periphery crises are composed of unique country experiences; hence, it will not be easily resolved with a 'one-size-fits-all' set of economic policies. Secondly, while each banking crisis has its inherent uniqueness, each crisis also shares sufficient commonalities with one or more of the Asian-5 1996/97 crises, the Nordic banking crisis of the early 1990s or the Japanese banking crisis of the 1990s. Thus, the extensive knowledge accumulated through these former banking crises can help in designing recovery policies

Searching for a Kuznets curve in environmental efficiency using kernel estimation

Cataloged from PDF version of article.The paper constructs environmental efficiency indexes for a sample consisting of high- and low-income countries using nonparametric production frontier techniques and then establishes an environmental Kuznets relationship for environmental efficiency by Nadaraya-Watson kernel estimation methodology. (C) 2000 Elsevier Science S.A. All rights reserved. JEL classification: Q25; Q32

Catching-up and innovation in high and low income countries

Cataloged from PDF version of article.The study utilizes a variant of the Malmquist Productivity Index computed by nonparametric linear programming techniques to empirically investigate the catching-up hypothesis for a group of high- and low-income countries. The results show that the countries with low initial per capita income levels catch up at a faster rate while countries with relatively high income depend more on technological progress for their productivity increases

Financial liberalisation: from segmented to integrated economies

Cataloged from PDF version of article.Capital market liberalisation transforms segmented stock markets into integrated ones. Further impact should be expected on the dynamics of the rest of the domestic economy. This study presents evidence to that effect. A significant change after liberalisation is the emergence of world returns as an influential factor on other economic fundamentals. The information content of world returns influences emerging market returns prior to capital market liberalisation and this relation continues after capital market liberalisation. What is new after liberalisation is the influence of world returns on the dynamics of the domestic economy as a whole and its relation to stock returns. © 2003 Elsevier Inc. All rights reserved

Is environmental efficiency trade inducing or trade hindering?

Cataloged from PDF version of article.Global efforts to identify strategies for sustainable economic growth and development underline the need for understanding important links between environmental policies and international trade. In this paper, by constructing an environmental efficiency index for 111 countries from 1980 to 2009, we are able to empirically test for one such link. An improvement in the environmental efficiency index in terms of carbon dioxide emissions reflects a decrease in the cost of efforts to mitigate the environmental costs associated with growth. Countries that improve their environmental efficiency are found to experience strong international trade effects, both through increased exports and increased imports. While the positive link between efficiency improvements and exports is supportive of the Porter hypothesis, the positive link between efficiency improvements and imports is supportive of strong positive income effects on account of environmental efforts. These results, which are robust to alternative estimation strategies, lend strong support to global efforts to improve countries' environmental efficiencies. © 2014 Elsevier B.V

Origin of the large thermoelectric power in oxygen-variable RBaCo_{2}O_{5+x} (R=Gd, Nd)

Thermoelectric properties of GdBaCo_{2}O_{5+x} and NdBaCo_{2}O_{5+x} single crystals have been studied upon continuous doping of CoO_2 planes with either electrons or holes. The thermoelectric response and the resistivity behavior reveal a hopping character of the transport in both compounds, providing the basis for understanding the recently found remarkable divergence of the Seebeck coefficient at x=0.5. The doping dependence of the thermoelectric power evinces that the configurational entropy of charge carriers, enhanced by their spin and orbital degeneracy, plays a key role in the origin of the large thermoelectric response in these correlated oxides.Comment: 5 pages, 4 figures, accepted for publication in PR