Sep 9
2011

Foreclosure Contagion and REO Versus Non-REO Sales

Using ZIP code-level data on foreclosure rates, distressed and non-distressed sales in Chicago, Illinois we examine the REO discount. We find significant differences in the difference in price between distressed and non-distressed properties in high- versus low-foreclosure rate neighborhoods. We …

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Sep 9
2011

House Prices and Economic Growth

House price changes can have both the wealth effect and the collateral effect on the economy. The wealth effect and the collateral effect respectively refer to changes in desired consumption and changes in actual consumption due to house price changes. …

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