Replication data for: A Simple Model of Subprime Borrowers and Credit Growth

Principal Investigator(s):  View help for Principal Investigator(s) Alejandro Justiniano; Giorgio E. Primiceri; Andrea Tambalotti

Version:  View help for Version V1

Name File Type Size Last Modified
  P2016_1087_data 10/26/2021 02:00:PM
LICENSE.txt text/plain 14.6 KB 12/07/2019 07:51:AM

Project Citation: 

Justiniano, Alejandro, Primiceri, Giorgio E., and Tambalotti, Andrea. Replication data for: A Simple Model of Subprime Borrowers and Credit Growth. Nashville, TN: American Economic Association [publisher], 2016. Ann Arbor, MI: Inter-university Consortium for Political and Social Research [distributor], 2019-12-07. https://doi.org/10.3886/E116314V1

Project Description

Summary:  View help for Summary The surge in credit and house prices that preceded the Great Recession was particularly pronounced in ZIP codes with a higher fraction of subprime borrowers (Mian and Sufi, 2009). We present a simple model with prime and subprime borrowers distributed across geographic locations, which can reproduce this stylized fact as a result of an expansion in the supply of credit. Due to their low income, subprime households are constrained in their ability to meet interest payments and hence sustain debt. As a result, when the supply of credit increases and interest rates fall, they take on disproportionately more debt than their prime counterparts, who are not subject to that constraint.

Scope of Project

Subject Terms:  View help for Subject Terms Steady state analysis; General equilibrium model; Model simulation
JEL Classification:  View help for JEL Classification
      D14 Household Saving; Personal Finance
      E32 Business Fluctuations; Cycles
      E44 Financial Markets and the Macroeconomy
      G01 Financial Crises
      G21 Banks; Depository Institutions; Micro Finance Institutions; Mortgages
      R31 Housing Supply and Markets
Geographic Coverage:  View help for Geographic Coverage United States
Time Period(s):  View help for Time Period(s) 1/2000 – 12/2006
Data Type(s):  View help for Data Type(s) program source code

Methodology

Unit(s) of Observation:  View help for Unit(s) of Observation ZIP codes,

Related Publications

Download this project

Published Versions

V1 [2019-12-07]

Export Metadata

Dublin Core

DDI 2.5

Report a Problem

Found a serious problem with the data, such as disclosure risk or copyrighted content? Let us know.

This material is distributed exactly as it arrived from the data depositor. ICPSR has not checked or processed this material. Users should consult the investigator(s) if further information is desired.