Franco Zecchetto

Published and Forthcoming Papers

Mortgage Design and Slow Recoveries. The Role of Recourse and Default

(with Pedro Gete)

The Review of Economic Studies, May 2023. Featured in IE Insights

[Published version]  [Online appendix]

Brief Summary: We show that mortgage recourse systems, by discouraging default, magnify the impact of nominal rigidities and cause deeper and more persistent recessions.

Distributional Implications of Government Guarantees in Mortgage Markets

(with Pedro Gete)

Review of Financial Studies, Volume 31(3), March 2018, pp. 1064–1097. Featured in David Wessel's blog at the Brookings Institution.

[Published version]

Brief Summary: We find that the removal of credit-risk guarantees by government-sponsored enterprises increases wealth inequality, favoring high-income households and disadvantaging low- and mid-income households.

Subject-Specific Performance Information Can Worsen the Tragedy of the Commons: Experimental Evidence

(with Mauricio Villena)

Journal of Economic Psychology, Volume 32(3), June 2011, pp. 330-347

[Published version] 

Brief Summary: We find that providing information about individuals' efforts and profits in a common pool resource game leads to higher effort levels. A combination of learning and imitation rules explains the adjustments in individual effort levels.