Using eminent domain to refinance underwater mortgages: A welfare analysis

被引：0

作者：

Miceli, Thomas J. ^{[1
]}

Pancak, Katherine ^{[2
]}

Segerson, Kathleen ^{[1
]}

机构：

[1] Univ Connecticut, Dept Econ, 365 Fairfield Way, Storrs, CT 06269 USA

[2] Univ Connecticut, Ctr Real Estate & Urban Econ Studies, One Univ Pl, Stamford, CT 06901 USA

来源：

INTERNATIONAL REVIEW OF LAW AND ECONOMICS | 2017年 / 51卷

关键词：

Eminent domain; Just compensation; Mortgage foreclosure; PUBLIC USE;

D O I：

10.1016/j.irle.2017.05.001

中图分类号：

F [经济];

学科分类号：

02 ;

摘要：

This paper evaluates the welfare consequences of the proposed use of eminent domain to forcibly refinance "underwater" mortgages (mortgages for which the remaining loan balance exceeds the value of the house). Our results show that, in the absence of transaction costs, the policy unambiguously increases welfare, regardless of the amount of compensation paid to lenders. However, when takings generate transaction costs, we show that in a competitive mortgage market where borrowers fully finance the needed compensation through lump sum taxes, welfare is decreasing in transaction costs, but more generous compensation for lenders may either increase or decrease social welfare. (C) 2017 Elsevier Inc. All rights reserved.

引用

页码：12 / 22

页数：11