"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
UD students not only read St. Augustine's Confessions in Rome, traveling to Ostia to marvel at the place in which, according to Book IX, St. Augustine and his mother, St. Monica, had a joint mystical vision of God -- they also travel 4.4 miles from the Irving campus to read the text with residents of South Irving.
+ Read MoreAs you know if you’ve read even some of our first UD Reads book, "All the Light We Cannot See," it’s possible to build a radio from random, scavenged parts, as long as you can find the necessary random, scavenged parts, as Werner does in the book. This is also essentially what Assistant Professor and Department Chair of Physics Jacob Moldenhauer did as well: He scavenged parts from the Physics Department, and built a radio.
+ Read MoreThe University of Dallas Board of Trustees announced today that it has unanimously selected Thomas S. Hibbs, Ph.D., BA '82 MA '83, to serve as the university's ninth president. The first alumnus of UD to be president, Hibbs has served as dean of the Honors College and distinguished professor of ethics and culture at Baylor University since 2003.
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