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Urbanization, agglomeration economies, and access to mortgage credit

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  • Gabriel, Stuart A.
  • Rosenthal, Stuart S.

Abstract

We examine the effect of urban agglomeration on access to mortgage credit using HMDA data from 1994 to 2008. Previous studies suggest that agglomeration should increase access to specialized workers and information, both of which should enhance liquidity in mortgage lending. Findings indicate that agglomeration economies increase mortgage origination rates and loan amounts in the 1990s, and especially so in higher risk locations. However, agglomeration effects dissipated over the study period. While we do not identify the microfoundations of these patterns, the decline in the influence of agglomeration coincides with the dramatic expansion of secondary mortgage markets and development of information technology, both of which should have reduced regional disparities in access to credit.

Suggested Citation

  • Gabriel, Stuart A. & Rosenthal, Stuart S., 2013. "Urbanization, agglomeration economies, and access to mortgage credit," Regional Science and Urban Economics, Elsevier, vol. 43(1), pages 42-50.
    • Handle: RePEc:eee:regeco:v:43:y:2013:i:1:p:42-50
    DOI: 10.1016/j.regsciurbeco.2012.11.006
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    6. SIERMINSKA Eva & ROSSI Cristina, 2016. "Housing Decisions, Family Types and Gender. A cross-national perspective," LISER Working Paper Series 2016-10, Luxembourg Institute of Socio-Economic Research (LISER).
    7. Mariacristina Rossi & Eva Sierminska, 2015. "Housing Decisions, Family Types and Gender: A Look across LIS Countries," SOEPpapers on Multidisciplinary Panel Data Research 815, DIW Berlin, The German Socio-Economic Panel (SOEP).
    8. Yinyin Wen & Min Zhao & Genli Tang & Xiaoxiao Zhou & Xingchen Hu & Li Sui, 2023. "How does financial agglomeration affect green development? Evidence from the Yangtze River Delta of China," Growth and Change, Wiley Blackwell, vol. 54(1), pages 135-156, March.
    9. Xu, Feng & Wang, Zhanqi & Chi, Guangqing & Zhang, Zhexi, 2020. "The impacts of population and agglomeration development on land use intensity: New evidence behind urbanization in China," Land Use Policy, Elsevier, vol. 95(C).
    10. Ren Lu & Torger Reve & Jing Huang & Ze Jian & Mei Chen, 2018. "A Literature Review Of Cluster Theory: Are Relations Among Clusters Important?," Journal of Economic Surveys, Wiley Blackwell, vol. 32(4), pages 1201-1220, September.
    11. Mohd Irfan & Muhammad Shahbaz, 2022. "Low-carbon energy strategies and financial development in developing economies: investigating long-run influence of credit and equity market development," Mitigation and Adaptation Strategies for Global Change, Springer, vol. 27(4), pages 1-26, April.
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    More about this item

    Keywords

    Urbanization; Agglomeration economies; Mortgage credit;
    All these keywords.

    JEL classification:

    • R1 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics
    • G2 - Financial Economics - - Financial Institutions and Services

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