Foreclosure spillovers and individual well‐being: Evidence from the Great Recession
利用利率变动对不同类型可调利率抵押贷款的影响，发现止赎率上升10%会降低当前和预期未来生活满意度，主要通过影响当地经济乐观情绪实现。
Abstract This paper explores the causal effect of foreclosure on individual well‐being. Using plausibly exogenous variation in the timing of interest rate changes on different types of adjustable rate mortgages, we find that a 10% rise in foreclosures is associated with a 0.58% and 0.28% decline in current and expected future life satisfaction. These effects are primarily driven by the effects on local economic optimism. The results are consistent with models of spatial externalities where large‐scale shocks generate adverse effects on communities, not just individuals.