Mortgage Market Design
This paper explores the causes and consequences of cross-country variation in mortgage market structure. It draws on insights from several fields: urban economics, asset pricing, behavioral finance, financial intermediation, and macroeconomics. It discusses lessons from the credit boom, the challenges of mortgage modification in the aftermath of the boom, consumer financial protection, and alternative mortgage forms and funding models. The paper argues that the US has much to learn from mortgage finance in other countries, and specifically from the Danish implementation of the European covered bonds system.
This paper is based on a keynote address to the annual meeting of the European Finance Association, delivered in Stockholm, Sweden on August 19, 2011. I am grateful to Tom Powers for able research assistance, and to an anonymous referee, Joao Cocco, Andreas Fuster, Stefano Giglio, Robert Hall, Howell Jackson, Anton Korinek, Parag Pathak, James Poterba, Tarun Ramadorai, Ulrich Seubert, Neil Shephard, Robert Shiller, and Arjen Siegmann for comments on earlier drafts. The views expressed herein are those of the author and do not necessarily reflect the views of the National Bureau of Economic Research.
John Y. Campbell
All outside activities are disclosed on my website at
None of these activities are relevant to the topic of this paper, with the possible exception of a paid talk to the Pension Real Estate Association in 2008.
John Y. Campbell, 2013. "Mortgage Market Design," Review of Finance, European Finance Association, vol. 17(1), pages 1-33. citation courtesy of