Category: Research
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A Farewell to Equality: Monetary Policy Implications of Heterogeneous Mortgage Refinancing
A Farewell to Equality: Monetary Policy Implications of Heterogeneous Mortgage Refinancing Martsella Davitaya We show that credit score heterogeneity dampens monetary policy transmission through fixed-rate mortgages (FRMs). Using Fannie Mae Single-Family Loan-Level historical data, we show that a one-percentage-point reduction in the mortgage rate increases the refinancing probability for borrowers with excellent credit scores…
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Anchored or De-anchored? Inflation Expectations and Monetary Policy
Anchored or De-anchored? Inflation Expectations and Monetary Policy Martsella Davitaya Download PDF and read more #ExpectedInflation, #FedReaction, #InflationIndexedBonds, #InflationRisk, #MonetaryPolicy, #NominalBonds, #TIPS Previous PostNext Post
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Recessions, Social Security and Retirement
Recessions, Social Security and Retirement Martsella Davitaya The primary difficulty in studying the effect of retirement income on labor supply is that factors that affect retirement income correlate with the labor force participation rate. Using the Health and Retirement Study and Social Security Administration income data, I overcome this difficulty by utilizing the fact that…
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Game of Cheating
Game of Cheating Martsella Davitaya We develop a model of risky information transmission between a higher and a lower-ability agent, which closely resembles academic cheating behavior. Assuming no synergy effects between agents or correlation of outputs, we derive a substitution and a strategic effect, both of which dictate the behavior of agents when information transmission…