Collateral Damage: The Impact of Foreclosures on New Home Mortgage Lending in the 1930s
Publisher
Cambridge University PressCitation
Fishback, P., Fleitas, S., Rose, J., & Snowden, K. (2020). Collateral Damage: The Impact of Foreclosures on New Home Mortgage Lending in the 1930s. The Journal of Economic History, 80(3), 853-885. doi:10.1017/S0022050720000352Journal
JOURNAL OF ECONOMIC HISTORYRights
Copyright © The Economic History Association. All rights reserved.Collection Information
This item from the UA Faculty Publications collection is made available by the University of Arizona with support from the University of Arizona Libraries. If you have questions, please contact us at repository@u.library.arizona.edu.Abstract
The Great Depression of the 1930s involved a severe disruption in the supply of home mortgage credit. This paper empirically identifies a mechanism lying behind this credit crunch: the impairment of lenders' balance sheets by illiquid foreclosed real estate. With data on hundreds of building and loans (B&Ls), the leading mortgage lenders in this period, we find that the overhang of foreclosed real estate explains about 30 percent of the drop in new lending between 1930 and 1935.ISSN
0022-0507EISSN
1471-6372Version
Final accepted manuscriptae974a485f413a2113503eed53cd6c53
10.1017/s0022050720000352
