"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
The university mourns the passing of Professor Emeritus of Chemistry Jack Towne, Ph.D. (April 23, 1927 - July 8, 2019), who passed away in his Irving home at age 92. He had a long, celebrated career in education, culminating in his roles at UD.
+ Read MoreJuly 1 marked an era of new beginnings at the University of Dallas as Thomas S. Hibbs, Ph.D., BA '82 MA '83, stepped into the limelight as the university’s ninth and first alumnus president. And his early morning arrival on UD’s Irving campus denoted a full-circle homecoming for the former Holy Trinity seminarian.
+ Read MoreOn July 9, President Thomas S. Hibbs, Ph.D., BA '82 MA '83, along with Alex and Martha Galbraith, parents of alumna Alison Galbraith, BA '12, signed the C.W. Eaker Scholarship Fund for Chemistry/Biochemistry at UD. The endowed scholarship is the first to be received by Hibbs since his presidency began on July 1; it honors longtime and much-loved chemistry professor C.W. Eaker, Ph.D., who served UD with distinction for over 40 years, first as a faculty member, then as dean of Constantin College and finally as provost of the university.
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