Series: IMF Working Papers
Author(s): Leonardo Martinez , Juan Carlos Hatchondo , and Juan Sanchez
Publisher: INTERNATIONAL MONETARY FUND
Publication Date: 01 January 2012
Keywords: mortgage, life cycle, down payment, garnishment, home ownership, mortgages, payments, debt, Welfare Economics: General, Financial Markets and the Macroeconomy,
This paper incorporates house price risk and mortgages into a standard incomplete market (SIM) model. The model is calibrated to match U.S. data and accounts for non-targeted features of the data such as the distri...