The Impact of Positive Payment Shocks on Mortgage Credit Risk A Natural Experiment from Home Equity Lines of Credit at End of Draw

Does Collateral Value Affect Asset Prices? Evidence from a Natural Experiment in Texas

Review of Financial Studies ◽

10.1093/rfs/hhaa117 ◽

2020 ◽

Cited By ~ 2

Author(s):

Albert Alex Zevelev

Keyword(s):

Asset Prices ◽

Natural Experiment ◽

House Prices ◽

Consumption Smoothing ◽

Constitutional Amendment ◽

Home Equity ◽

Home Equity Loans ◽

The Law ◽

The Impact

Abstract Does the ability to pledge an asset as collateral, after purchase, affect its price? This paper identifies the impact of collateral service flows on house prices, exploiting a plausibly exogenous constitutional amendment in Texas that legalized home equity loans in 1998. The law change increased Texas house prices 4%; this is price-based evidence that households are credit-constrained and value home equity loans to facilitate consumption smoothing. Prices rose more in locations with inelastic supply, higher prelaw house prices, higher income, and lower unemployment. These estimates reveal that richer households value the option to pledge their home as collateral more strongly.

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Home Equity Lines of Credit and the Unemployment Rate – What Does the Evidence Say?

SSRN Electronic Journal ◽

10.2139/ssrn.2147506 ◽

2012 ◽

Author(s):

John Phillip Lajaunie ◽

Norbert J. Michel ◽

Shari Lawrence ◽

Ronnie Fanguy

Keyword(s):

Unemployment Rate ◽

Home Equity ◽

Lines Of Credit

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The Impact of COVID-19 on Supply Chain Credit Risk

SSRN Electronic Journal ◽

10.2139/ssrn.3639735 ◽

2020 ◽

Author(s):

Senay Agca ◽

John R. Birge ◽

Zi'ang Wang ◽

Jing Wu

Keyword(s):

Supply Chain ◽

Credit Risk ◽

The Impact

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Optimal feedback control of stock prices under credit risk dynamics

Annals of Operations Research ◽

10.1007/s10479-021-04002-6 ◽

2021 ◽

Author(s):

Jinghai Shao ◽

Sovan Mitra ◽

Andreas Karathanasopoulos

Keyword(s):

Credit Risk ◽

Stock Prices ◽

Stock Price ◽

Global Financial Crisis ◽

Optimal Feedback Control ◽

Dynamic Programming Principle ◽

Price Model ◽

Managerial Control ◽

Optimal Feedback ◽

The Impact

AbstractIn this paper we provide a stock price model that explicitly incorporates credit risk, under a stochastic optimal control system. The stock price model also incorporates the managerial control of credit risk through a control policy in the stochastic system. We provide explicit conditions on the existence of optimal feedback controls for the stock price model with credit risk. We prove the continuity of the value function, and then prove the dynamic programming principle for our system. Finally, we prove the Viscosity Solution of the Hamilton–Jacobi–Bellman equation. This paper is particularly relevant to industry, as the impact of credit risk upon stock prices has been prominent since the commencement of the Global Financial Crisis.

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Natural Experiment on Trade and Investment Liberalization and Soft Drink Consumption

European Journal of Public Health ◽

10.1093/eurpub/ckaa165.359 ◽

2020 ◽

Vol 30 (Supplement_5) ◽

Author(s):

Y Tcholakov

Keyword(s):

Public Health ◽

International Trade ◽

Natural Experiment ◽

Soft Drink ◽

Trade Agreement ◽

P Value ◽

Soft Drink Consumption ◽

Obesity And Diabetes ◽

Wide Range ◽

The Impact

Abstract Background Globalization is recognized to as a contributing factor to a health harming environment through a variety of mechanisms including through changes in food systems and food availability. Sugar-sweetened beverage (SSB) consumption is linked to obesity and diabetes and its regulation is a key priority for public health. The Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) is an international trade agreement between 11 countries. Methods This project uses of natural experiment methods to predict the impact of the entry into force of the CPTPP on SSB consumption. These methods allow quantitative inferences to be drawn in the situations where the exposure is not randomly assigned. Soft drink consumption data was collected from the Euromonitor database for 80 countries from all regions. This data was used to estimate the effect of agreements similar to the TPP. Results Eleven country trade agreement pairs were identified. In 5 cases out of the 11, the exposed country had a higher soft drink consumption at five years after the trade agreement. The effect of the trade agreement exposure for an average country in the sample in a trade agreement was found to be 1.10 (95% CI: 1.01-1.18; p-value: 0.03) after adjusting for GDP and the involvement of the US. In 7 of the 11 member-countries soft drink consumption is expected to increase yielding an average increase of 9.0% in those countries; the changes did not yield statistically significant differences in others. Conclusions This projected extended the use of synthetic methods to the projection of future effects of policy implementation. While it showed that there may be increasing trend of SSB consumption in certain scenarios, this could not be generalized to all cases. This illustrates the wide range of effects of international trade liberalization and highlights that national policy probably plays a strong modulating role on the impact that it has on local food environments. Key messages Globalization can lead to health harming environments and its impacts should further be studied by public health professionals and researchers. Many global policies have the potential to lead to significant health impacts but are negotiated without involving public health experts.

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