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

John Campbell, Tarun Ramadorai and Benjamin Ranish

No 18394, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: To understand the effects of regulation on mortgage risk, it is instructive to track the history of regulatory changes in a country rather than to rely entirely on cross- country evidence that can be contaminated by unobserved heterogeneity. However, in developed countries with fairly stable systems of financial regulation, it is difficult to track these effects. We employ loan-level data on over a million loans disbursed in India over the 1995 to 2010 period to understand how fast-changing regulation impacted mortgage lending and risk. We use cross-sectional differences in the time- series variation of delinquency rates, conditional on initial interest rates, to detect the effects of regulation on mortgage delinquencies.

JEL-codes: G21 (search for similar items in EconPapers)
Date: 2012-09
New Economics Papers: this item is included in nep-ban, nep-cba, nep-rmg and nep-ure
Note: AP CF
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Citations: View citations in EconPapers (9)

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Working Paper: How Do Regulators Influence Mortgage Risk? Evidence from an Emerging Market (2012)
Working Paper: How Do Regulators Influence Mortgage Risk: Evidence from an Emerging Market (2012)
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