Cornell University

This is a past event. Its details are archived for historical purposes.

The contact information may no longer be valid.

Please visit our current events listings to look for similar events by title, location, or venue.

Junior Recruitment Workshop: Stephanie Johnson

Monday, February 11, 2019 at 11:40am to 1:10pm

Ives Hall, 115
B07 Tower Rd, Ithaca, NY 14853, USA

Stephanie Johnson, Northwestern University

Mortgage Leverage and House Prices

Abstract: I measure the effect of mortgage leverage restrictions on house prices using a change in the eligibility requirements imposed by Fannie Mae and Freddie Mac. In 1999, Fannie Mae and Freddie Mac’s debt-to-income requirements diverged, leading to tighter lending standards in places where local lenders had pre-existing relationships with Freddie Mac. Locations with tighter debt-to-income requirements experience an immediate reduction in house prices, showing that changes in lending standards have powerful effects. The effect builds over time, resulting in a smaller house price boom and bust in these locations during the 2000s. I use a simple model to interpret the empirical results and extrapolate to other similar policies, finding that a relaxation of debt-to-income restrictions is important for explaining the 2000s housing boom.

Google Calendar iCal Outlook
Event Type

Seminar, Class/ Workshop




economics, EconSeminar, EconMetrics, EconMacro, EconPublic, EconIO, EconRecruit, EconBehave, EconMicro, EconLabor, EconAppliedMicro



Contact E-Mail

Contact Name

Amy Moesch

Contact Phone



Stephanie Johnson

Speaker Affiliation

Northwestern University

Open To

Cornell Economics Community (List Serve Members)