000			01330nam a22001577a 4500
999			_c517264 _d517264
008			210707b ||||| |||| 00| 0 eng d
100			_aGanong, Peter and Noel, Pascal _926245
245			_aLiquidity versus wealth in household debt obligations: Evidence from housing policy in the great recession
260			_aThe American Economic Review
300			_a110(10), Oct, 2020: p.3100-3138
520			_aWe exploit variation in mortgage modifications to disentangle the impact of reducing long-term obligations with no change in short-term payments ("wealth"), and reducing short-term payments with no change in long-term obligations ("liquidity"). Using regression discontinuity and difference-in-differences research designs with administrative data measuring default and consumption, we find that principal reductions that increase wealth without affecting liquidity have no effect, while maturity extensions that increase only liquidity have large effects. This suggests that liquidity drives default and consumption decisions for borrowers in our sample and that distressed debt restructurings can be redesigned with substantial gains to borrowers, lenders, and taxpayers. – Reproduced
650			_aMortgage loans, Wealth _926246
773			_aThe American Economic Review
906			_aHOUSING POLICY
942			_cAR