01808cas a2200265 a 4500 AALejournalIMF011642 230101c9999 xx r poo 0 0eng d 5.00 USD 9781463932534 1018-5941 BD-DhAAL BD-DhAAL Martinez, Leonardo. Mortgage Defaults / Leonardo Martinez, Juan Carlos Hatchondo, Juan Sanchez. Washington, D.C. : International Monetary Fund, 2012. 1 online resource (33 pages) IMF Working Papers <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students 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 distribution of down payments, the life-cycle profile of home ownership, and the mortgage default rate. The average coefficients that measure the agents' ability to self-insure against income shocks are similar to those of a SIM model without housing but housing increases the values of these coefficients for younger agents. The response of consumption to house price shocks is minimal. The introduction of minimum down payments or income garnishment benefits a majority of the population. Mode of access: Internet Hatchondo, Juan Carlos. Sanchez, Juan. IMF Working Papers; Working Paper ; No. 2012/026 Full text available on IMF http://elibrary.imf.org/view/journals/001/2012/026/001.2012.issue-026-en.xml IMF e-Library