Jenny Gu - Research Insights

Jenny Gu, Satish & Yasmin Gupta College of Business

Jenny Gu"Mortgage Loan Securitization and Personal Consumption Smoothening"

In the Author's Words

In this paper we examine the extent to which personal consumptions are sheltered from state-specific economic shocks because of banks’ mortgage loan securitizations. We posit that securitization contributes to personal consumption smoothening due to securitizations’ positive effect on banks’ credit supply, which reduces consumers’ consumption constraints during economic shocks. Using data for U. S. banks’ mortgage loan securitizations from 1989 to 2008, we show that personal consumption smoothening is positively related to securitization. The finding of a significant relationship between loan securitizations and consumption smoothening contributes to the continuing debate on the role of financial innovation in real economy.

Gu, J., Hernandez, R., Liu, P., & Shao, Y. (2015). Mortgage Loan Securitization and Personal Consumption Smoothening. Journal of Economics and Finance. “lead article” in issue.

Faculty Profile: Jenny Gu

News

UD Launches Reading Initiative, Partners with Local Schools

During the course of the 2018-19 academic year, the university will sponsor a series of lectures, art exhibits, panel discussions and other activities centered around All the Light We Cannot See, the first chosen book for this new community reading initiative, culminating in author Anthony Doerr's visit to campus as the 2019 Eugene McDermott lecturer.

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