NATIONAL BUREAU OF ECONOMIC RESEARCH
NATIONAL BUREAU OF ECONOMIC RESEARCH

The Political Economy of the Subprime Mortgage Credit Expansion

Atif Mian, Amir Sufi, Francesco Trebbi

NBER Working Paper No. 16107
Issued in June 2010
NBER Program(s):   POL

We examine how special interests, measured by campaign contributions from the mortgage industry, and constituent interests, measured by the share of subprime borrowers in a congressional district, may have influenced U.S. government policy toward the housing sector during the subprime mortgage credit expansion from 2002 to 2007. Beginning in 2002, mortgage industry campaign contributions increasingly targeted U.S. representatives from districts with a large fraction of subprime borrowers. During the expansion years, mortgage industry campaign contributions and the share of subprime borrowers in a congressional district increasingly predicted congressional voting behavior on housing related legislation. The evidence suggests that both subprime mortgage lenders and subprime mortgage borrowers influenced government policy toward housing finance during the subprime mortgage credit expansion.

download in pdf format
   (364 K)

email paper

A non-technical summary of this paper is available in the November 2010 NBER digest.  You can sign up to receive the NBER Digest by email.

Machine-readable bibliographic record - MARC, RIS, BibTeX

Document Object Identifier (DOI): 10.3386/w16107

Published: Mian, Atif & Sufi, Amir & Trebbi, Francesco, 2013. "The Political Economy of the Subprime Mortgage Credit Expansion," International Quarterly Journal of Political Science, now publishers, vol. 8(4), pages 373-408, October. citation courtesy of

Users who downloaded this paper also downloaded* these:
Mian and Sufi w15896 Household Leverage and the Recession of 2007 to 2009
Tong and Wei w14205 Real Effects of the Subprime Mortgage Crisis: Is it a Demand or a Finance Shock?
Calomiris w15403 Banking Crises and the Rules of the Game
Mayer and Pence w14083 Subprime Mortgages: What, Where, and to Whom?
Mian and Sufi w13936 The Consequences of Mortgage Credit Expansion: Evidence from the 2007 Mortgage Default Crisis
 
Publications
Activities
Meetings
NBER Videos
Themes
Data
People
About

National Bureau of Economic Research, 1050 Massachusetts Ave., Cambridge, MA 02138; 617-868-3900; email: info@nber.org

Contact Us