"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
Noted legal scholar and Princeton University professor Robert P. George will address the Class of 2020 during the 61st annual Spring Commencement Ceremony at the University of Dallas. The ceremony will take place at 10 a.m. on Sunday, May 17, at The Theatre at Grand Prairie.
+ Read MoreThe University of Dallas' Satish and Yasmin Gupta College of Business is honored to announce its 2020 Hall of Fame inductees, including Gail Warrior Suchy, MBA '99, CEO of CASPR Group; Michael Stedman Wyatt, MBA '91, executive managing director at Cushman & Wakefield of Texas; and John L. Zogg, Jr., MBA '92, managing director at Crescent Real Estate LLC. New Gupta Hall of Fame members will be inducted during the annual award ceremony on Friday, Jan. 24, 2020, from 6-8 p.m.
+ Read MoreOn Dec. 23, 2019, the university bid farewell to a beloved faculty member and alumnus. Professor of English John Alvis, BA '66 MA '69 PhD '73, passed away at age 75, less than two weeks after the passing of his wife, Sara Kathleen, MA '71, to whom he was married for more than 50 years.
+ Read More
