Estimating the Effect of Mortgage Foreclosures on Nearby Property Values: A Critical Review of the Literature
W. Scott Frame
Economic Review, Vol. 95, No. 3, 2010
This article reviews the recently evolved economic literature seeking to estimate the negative effects of foreclosures. While the author finds overall evidence of such effects, he identifies various methodological issues, data limitations, and curious results.
Mortgage Foreclosure Prevention Efforts
Kristopher Gerardi and Wenli Li
Economic Review, Vol. 95, No. 2, 2010
The article describes the U.S. foreclosure prevention programs of the past few years and then examines both the theoretical academic literature of the 1990s and early 2000s and the more recent empirical literature generated by the recent foreclosure crisis. Finally, the authors outline characteristics that an effective loss mitigation strategy should contain.
Too Big to Fail after FDICIA
Larry D. Wall
Economic Review, Vol. 95, No. 1, 2010
This reprint of a 1993 article outlines what Congress intended the Federal Deposit Insurance Corporation Improvement Act of 1991 to accomplish. A new preface discusses FDICIA's successes and failures as well as research calling for clearer policies to deal with the problem of "too big to fail" banks.