Assistant Professor, Taylor Begley's papers, "Disaster Lending: 'Fair' Prices, but 'Unfair' Access, and "Long-Run Labor Costs of Housing Booms and Busts, have been accepted for publication by prestigious journals.
The first paper, "Disaster Lending: 'Fair' Prices, but 'Unfair' Access," will be published in Management Science. This research explores the Small Business Administration's disaster-relief home loan program which denies significantly more loans in areas with larger shares of minorities, subprime borrowers, and higher income inequality. The findings show that risk-insensitive loan pricing -- a feature present in many regulated and government-run lending programs -- is an important driver of these disparities in access to credit. The differences in denial rates are disproportionately high compared to private-market lending and government-insured risk-sensitive loan pricing programs.topic of disaster lending, examining the pricing mechanisms in place and their impact on accessibility. Thus, despite ensuring "fair" prices, the use of risk-insensitive pricing may lead to "unfair" access to credit. READ MORE
The second paper, "Long-Run Labor Costs of Housing Booms and Busts," has been accepted for publication in the Journal of Financial and Quantitative Analysis. This paper shows large flows of workers into the real estate agent occupation (REA) during the early 2000s from virtually all parts of the skill, wage, and education spectrums, and especially in areas with non-fundamental house price increases. READ MORE
