"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
Debra Ricard, MPM ’20, already had a master’s degree when she decided to enter the master’s program at UD. With a B.A. in architecture from Washington University in St. Louis and a master’s in architecture from the Catholic University of America, Ricard still did not feel she had found her vocation.
+ Read MoreNicknamed "Professor Bruce" and known for enchanting generations of students with his classroom stories, Professor of Management Bruce Evans is among the longest serving University of Dallas faculty members.
+ Read MoreSister Mary Brian Bole, BA ’67, was joyful. Her joy and enthusiasm permeated everything she did, from teaching and administrating at numerous Catholic schools (including Bishop Dunne, the Highlands School and Nolan Catholic in the Dallas/Fort Worth area as well as schools in Louisiana and Mississippi), to working in the Office of Undergraduate Admission at UD, to delivering a paper at a political science convention in Hungary just a few years ago.
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