J. Lee Whittington Named Dean of Gupta College of Business
Professor of Management J. Lee Whittington, Ph.D., has taught at the college since 2000.
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"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
Professor of Management J. Lee Whittington, Ph.D., has taught at the college since 2000.
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+ Read MoreAs of today, over 1,900 University of Dallas alumni have banded together in the Forging Our Future challenge, unlocking a $200,000 challenge gift from an anonymous alumni couple.
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