Title

Drive 'Til You Qualify: Credit Quality And Household Location

Keywords

Mortgage quality; Spatial concentration

Abstract

A deeper understanding of the credit-sorting process is essential when considering the extent to which home foreclosures are driven by price contagion or an underlying spatial pattern of mortgage quality. Adapting household location theory, we find that credit constrained households follow 'drive-'til-you-qualify' behavior leading to rising credit quality with distance from the CBD while unconstrained households exhibit declining credit quality. Individual level mortgage loan-to-income data for the 100 largest MSAs show credit constrained behavior either throughout the urban area or concentrated in the suburbs. Meta analysis of the credit sorting estimates identify MSA characteristics associated with each pattern. © 2011 Elsevier B.V.

Publication Date

1-1-2012

Publication Title

Regional Science and Urban Economics

Volume

42

Issue

1-2

Number of Pages

63-77

Document Type

Article

Personal Identifier

scopus

DOI Link

https://doi.org/10.1016/j.regsciurbeco.2011.06.001

Socpus ID

79959632858 (Scopus)

Source API URL

https://api.elsevier.com/content/abstract/scopus_id/79959632858

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