@techreport{NBERw5961,
 title = "Leverage and House-Price Dynamics in U.S. Cities",
 author = "Owen Lamont and Jeremy C. Stein",
 institution = "National Bureau of Economic Research",
 type = "Working Paper",
 series = "Working Paper Series",
 number = "5961",
 year = "1997",
 month = "March",
 URL = "http://www.nber.org/papers/w5961",
 abstract = {In this paper, we use city-level data to analyze the relationship between homeowner borrowing patterns and house-price dynamics. Our principal finding is that in cities where homeowners are more leveraged--i.e., have higher loan-to-value ratios--house prices react more sensitively to city-specific shocks, such as changes in per-capita income.  This finding is consistent with recent theories which emphasize the role of collateralized borrowing in shaping the behavior of asset prices.},
}