Antje Berndt

Research School of Finance, Actuarial Studies and
Australian National University
Tel: 412-268-1871

E-Mail: antje.berndt

NBER Working Papers and Publications

October 2010How Does the U.S. Government Finance Fiscal Shocks?
with Hanno Lustig, Sevin Yeltekin: w16458
We develop a method for identifying and quantifying the fiscal channels that help finance government spending shocks. We define fiscal shocks as surprises in defense spending and show that they are more precisely identified when defense stock data are used in addition to aggregate macroeconomic data. Our results show that in the postwar period, over 9% of the U.S. government's unanticipated spending needs were financed by a reduction in the market value of debt and more than 73% by an increase in primary surpluses. Additionally, we find that long-term debt is more effective at absorbing fiscal risk than short-term debt.

Published: Antje Berndt & Hanno Lustig & Sevin Yeltekin, 2012. "How Does the US Government Finance Fiscal Shocks?," American Economic Journal: Macroeconomics, American Economic Association, vol. 4(1), pages 69-104, January. citation courtesy of

July 2010The Role of Mortgage Brokers in the Subprime Crisis
with Burton Hollifield, Patrik Sandås: w16175
Prior to the subprime crisis, mortgage brokers originated about 65% of all subprime mortgages. Yet little is known about their behavior during the runup to the crisis. Using data from New Century Financial Corporation, we find that brokers earned an average revenue of $5,300 per funded loan. We decompose the broker revenues into a cost and a profit component and find evidence consistent with brokers having market power. The profits earned are different for different types of loans and vary with borrower, broker, regulation and neighborhood characteristics. We relate the broker profits to the subsequent performance of the loans and show that brokers earned high profits on loans that turned out to be riskier ex post.

Published: The Role of Mortgage Brokers in the Subprime Crisis, Antje Berndt, Burton Hollifield, Patrik Sandås. in Market Institutions and Financial Market Risk, Carey, Kashyap, Rajan, and Stulz. 2012

June 2010The Role of Mortgage Brokers in the Subprime Crisis
with Burton Hollifield, Patrik Sandås
in Market Institutions and Financial Market Risk, Mark Carey, Anil Kashyap, Raghuram Rajan, and René Stulz, organizers
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