Search Results

(refine search)

SORT BY: PREVIOUS / NEXT

All:
Title:
Author:
Abstract:
Keywords:

+ Add Search Parameter

Working Paper
Ten Days Late and Billions of Dollars Short: The Employment Effects of Delays in Paycheck Protection Program Financing
Doniger, Cynthia L.; Kay, Benjamin S. (2021-01-15)
Delay in the provision of Paycheck Protection Program (PPP) loans due to insufficient initial funding under the CARES Act substantially and persistently reduced employment. Delayed loans increased job losses in May and persistently reduced recalls throughout the summer. The magnitude and heterogeneity of effects suggest significant barriers to obtaining external financing, particularly among small firms. Effects are inequitably distributed: larger among the self-employed, less well paid, less well educated and--importantly for the design of future programs--in very small firms. Our estimates ...
Finance and Economics Discussion Series , Paper 2021-003

Working Paper
Student Loan Relief Programs: Implications for Borrowers and the Federal Government
Edmiston, Kelly D.; Di, Wenhua (2017-01-02)
As college costs increase and more students borrow to fund their education, debt load and delinquency rates have become significant problems. Student loan obligations are challenging to manage for new graduates with lower earnings and for borrowers in financial hardship. This paper discusses the various federal student loan repayment relief programs that are available and their borrower and fiscal impacts. The implications for borrowers' costs and the federal budget vary significantly by loan amount, income level, and relief program.
Research Working Paper , Paper RWP 17-2

Working Paper
Shadow Insurance? Money Market Fund Investors and Bank Sponsorship
Jacewitz, Stefan; Unal, Haluk; Wu, Chengjun (2021-08-27)
We argue that bank holding companies (BHCs) extend shadow insurance to the prime institutional money market funds (PI-MMFs) they sponsor and that PI-MMFs price this shadow insurance by charging investors significantly higher expense ratios and paying lower net yields. We provide evidence that after September 2008, expense ratios at BHC-sponsored PI-MMFs increased more than at non-BHC-sponsored PI-MMFs. Despite higher expense ratios, BHC-sponsored PI-MMFs did not experience larger redemptions than non-BHC-sponsored PI-MMFs. In addition, we show that expenses ratios increased with BHCs’ ...
Research Working Paper , Paper RWP 21-07

Report
Tuition, Debt, and Human Capital
Chakrabarti, Rajashri; Liberman, Andres; Yannelis, Constantine; Fos, Vyacheslav (2020-02-01)
This paper investigates the eﬀects of college tuition on student debt and human capital accumulation. We exploit data from a random sample of undergraduate students in the United States and implement a research design that instruments for tuition with relatively large changes to the tuition of students who enrolled at the same school in diﬀerent cohorts. We ﬁnd that $10,000 in higher tuition causally reduces the probability of graduating with a graduate degree by 6.2 percentage points and increases student debt by $2,961. Higher tuition also reduces the probability of obtaining an ...
Staff Reports , Paper 912

Report
Personal Bankruptcy Protection and Household Debt
Severino, Felipe; Brown, Meta; Chakrabarti, Rajashri (2024-04-01)
Increasing personal bankruptcy protection raises consumers’ desire to borrow and lenders’ cost of extending credit; the impact on equilibrium borrowing is ambiguous. Using bankruptcy protection changes between 1999 and 2005 across U.S. states, we find that borrowers respond to greater protection by increasing their unsecured debt. Border county estimates suggest that local economic conditions do not drive these results. Borrowers pay more for protection through higher interest rates, yet delinquency is unaffected. Remarkably, our results indicate that rising borrower demand outstripped ...
Staff Reports , Paper 1099

Report
How the Student Loan Payment Pause Affected Borrowers’ Credit Access and Credit Use
Cooper, Daniel H.; Haddix, Maddie (2025-01-13)
This brief examines how the pandemic-related, 43-month moratorium on federal student loan payments and interest accruals affected borrowers’ credit card limits and balances. The pause freed up an average of $280 a month for each of the 17 million student loan holders in active repayment, and it included a provision that erased previous defaults on student loans.
Current Policy Perspectives , Paper 25-1

Working Paper
The Mortgage Rate Conundrum
Justiniano, Alejandro; Tambalotti, Andrea; Primiceri, Giorgio E. (2017-08-01)
We document the emergence of a disconnect between mortgage and Treasury interest rates in the summer of 2003. Following the end of the Federal Reserve expansionary cycle in June 2003, mortgage rates failed to rise according to their historical relationship with Treasury yields, leading to significantly and persistently easier mortgage credit conditions. We uncover this phenomenon by analyzing a large dataset with millions of loan-level observations, which allows us to control for the impact of varying loan, borrower and geographic characteristics. These detailed data also reveal that ...
Working Paper Series , Paper WP-2017-23

Working Paper
The Tail That Wagged the Dog: What Explains the Persistent Employment Effect of the 10-Day PPP Funding Delay?
Gorbachev, Olga; Luengo-Prado, Maria Jose; Wang, J. Christina (2023-07-01)
This study explores the mechanisms explaining the large, persistent effect of the 10-day funding delay in the 2020 Paycheck Protection Program (PPP) on employment recovery during the COVID-19 pandemic, as estimated by Doniger and Kay (2021). We find that the top 1 percent of urban counties by population fully account for the significant effect of the delay on county-level employment. The strong correlation between worse loan delay and slower employment growth in these counties is due to a factor commonly omitted from analyses: The nature of business and the high rate of human interactions in ...
Working Papers , Paper 23-6

Working Paper
Explaining the Life Cycle of Bank-Sponsored Money Market Funds: An Application of the Regulatory Dialectic
Jacewitz, Stefan; Pogach, Jonathan; Unal, Haluk; Wu, Chengjun (2024-02-05)
In this paper, we present empirical evidence of the regulatory dialectic in the prime institutional money market fund (PI-MMF) industry. The “regulatory dialectic”, developed by Kane (1977, 1981), describes how banks and regulators react to each other. For decades, a cap on commercial deposit interest rates fueled dramatic growth in bank-sponsored PI-MMFs as a form of shadow banking. During the growth period, banks with more commercial deposits were more likely to enter the PI-MMF industry in an effort to keep their commercial customers in affiliated subsidiaries. However, the 2008 crisis ...
Research Working Paper , Paper RWP 24-01

Working Paper
Credit When You Need It
Hartley, Daniel; Keys, Benjamin J.; Collier, Benjamin; Xian Ng, Jing (2024-08)
We estimate the causal effect of emergency credit on households’ finances after a negative shock. To do so, we link application data from the U.S. Federal Disaster Loan program, which provides loans to households that have uninsured damages from a federally-declared natural disaster, to a panel of credit records before and after the shock. We exploit a discontinuity in the loan approval rules that led applicants with debt-to-income ratios below 40% to be differentially likely to be approved. Using an instrumented difference-in-differences research design, we find that credit provision at ...
Working Paper Series , Paper WP 2024-16

show more (42)

PREVIOUS / NEXT

Fed in Print

Search Results

FILTER BY year

FILTER BY Bank

FILTER BY Series

FILTER BY Content Type

FILTER BY Author

FILTER BY Jel Classification

FILTER BY Keywords