This paper explores the causal effect of foreclosure on individual well-being. Using plausibly exogenous variation in the timing of interest rate changes on different types of adjustable rate mortgages, we find that a 10% rise in foreclosures is associated with a 0.58% and 0.28% decline in current and expected future life satisfaction. These effects are primarily driven by the effects on local economic optimism. The results are consistent with models of spatial externalities where large-scale shocks generate adverse effects on communities, not just individuals.

中文翻译：

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止赎溢出效应和个人福祉：来自大萧条的证据

本文探讨了止赎对个人福祉的因果影响。使用不同类型的可调整利率抵押贷款利率变化时间的合理外生变化，我们发现止赎增加 10% 与当前和预期未来生活满意度下降 0.58% 和 0.28% 相关。这些影响主要是由对当地经济乐观情绪的影响所驱动的。结果与空间外部性模型一致，其中大规模冲击对社区产生不利影响，而不仅仅是个人。