1{2 "indexed": {3 "date-parts": [4 [5 2026,6 10,7 198 ]9 ],10 "date-time": "2026-10-19T08:22:43Z",11 "timestamp": 1792398163895,12 "version": "4.4.0"13 },14 "reference-count": 46,15 "publisher": "Oxford University Press (OUP)",16 "issue": "3",17 "license": [18 {19 "start": {20 "date-parts": [21 [22 2020,23 1,24 1125 ]26 ],27 "date-time": "2020-01-11T00:00:00Z",28 "timestamp": 157870080000029 },30 "content-version": "vor",31 "delay-in-days": 0,32 "URL": "https://academic.oup.com/journals/pages/open_access/funder_policies/chorus/standard_publication_model"33 }34 ],35 "content-domain": {36 "domain": [],37 "crossmark-restriction": false38 },39 "short-container-title": [],40 "published-print": {41 "date-parts": [42 [43 2020,44 5,45 146 ]47 ]48 },49 "abstract": "<jats:title>Abstract</jats:title>\n <jats:p>This article uses a structural model to show that foreclosures played a crucial role in exacerbating the recent housing bust and to analyse foreclosure mitigation policy. We consider a dynamic search model in which foreclosures freeze the market for non-foreclosures and reduce price and sales volume by eroding lender equity, destroying the credit of potential buyers, and making buyers more selective. These effects cause price-default spirals that amplify an initial shock and help the model fit both national and cross-sectional moments better than a model without foreclosure. When calibrated to the recent bust, the model reveals that the amplification generated by foreclosures is significant: ruined credit and choosey buyers account for 25.4% of the total decline in non-distressed prices and lender losses account for an additional 22.6%. For policy, we find that principal reduction is less cost-effective than lender equity injections or introducing a single seller that holds foreclosures off the market until demand rebounds. We also show that policies that slow down the pace of foreclosures can be counterproductive.</jats:p>",50 "DOI": "10.1093/restud/rdaa001",51 "type": "journal-article",52 "created": {53 "date-parts": [54 [55 2020,56 1,57 858 ]59 ],60 "date-time": "2020-01-08T23:20:07Z",61 "timestamp": 157852560700062 },63 "page": "1331-1364",64 "source": "Crossref",65 "is-referenced-by-count": 67,66 "title": [67 "How Do Foreclosures Exacerbate Housing Downturns?"68 ],69 "prefix": "10.1093",70 "volume": "87",71 "author": [72 {73 "given": "Adam M",74 "family": "Guren",75 "sequence": "first",76 "affiliation": [77 {78 "name": "Boston University and NBER"79 }80 ],81 "role": [82 {83 "vocabulary": "crossref",84 "role": "author"85 }86 ]87 },88 {89 "given": "Timothy J",90 "family": "McQuade",91 "sequence": "first",92 "affiliation": [93 {94 "name": "Stanford University"95 }96 ],97 "role": [98 {99 "vocabulary": "crossref",100 "role": "author"101 }102 ]103 }104 ],105 "member": "286",106 "published-online": {107 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