How Do Regulators Influence Mortgage Risk? Evidence from an Emerging Market

32 Pages Posted: 14 Mar 2012

See all articles by John Y. Campbell

John Y. Campbell

Harvard University - Department of Economics; National Bureau of Economic Research (NBER)

Tarun Ramadorai

Imperial College London; Centre for Economic Policy Research (CEPR)

Date Written: March 14, 2012

Abstract

This paper uses microeconomic data from India to explore the effects of rapidly changing regulation on mortgage lending and mortgage risk. We find evidence that regulation has important effects on rates and defaults. We also find evidence suggestive of learning by the mortgage provider in a turbulent regulatory environment.

Keywords: regulation, mortgage risk, defaults, learning

JEL Classification: G21, R21, R31

Suggested Citation

Campbell, John Y. and Ramadorai, Tarun, How Do Regulators Influence Mortgage Risk? Evidence from an Emerging Market (March 14, 2012). AFA 2013 San Diego Meetings Paper. Available at SSRN: https://ssrn.com/abstract=2021349 or http://dx.doi.org/10.2139/ssrn.2021349

John Y. Campbell

Harvard University - Department of Economics ( email )

Littauer Center
Room 213
Cambridge, MA 02138
United States
617-496-6448 (Phone)
617-495-7730 (Fax)

HOME PAGE: http://scholar.harvard.edu/campbell

National Bureau of Economic Research (NBER)

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

Tarun Ramadorai (Contact Author)

Imperial College London ( email )

South Kensington Campus
Exhibition Road
London, Greater London SW7 2AZ
United Kingdom

HOME PAGE: http://www.tarunramadorai.com

Centre for Economic Policy Research (CEPR) ( email )

London
United Kingdom

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