The aim of this paper is to assess whether there is a bubble in the American Student Loan Debt Market. Given some stylized facts that provide analogies between Student Loans Market and House Mortgages Market of 2008, I can counter-factually assume the existence of a bubble. For the empirical investigation, I use as a proxy for the entire market the non-AAA ABS issued on Student Loan Debt. Student Loan ABSs allow for the replication of the Time Varying VAR proposed by Gal and Gambetti (2015) with higher frequency data. Gal and Gambetti (2015) proved that a restrictive monetary policy would inflate the eventual bubble according with Theory of Rational Bubble. Empirical analysis con rms the existence of a bubble in Student Loan Debt Market.
Is there a bubble in the US student loan debt market? Evidence from time varying VARs / Vassalli, Federica. - (2020).
Is there a bubble in the US student loan debt market? Evidence from time varying VARs
Vassalli, Federica
2020
Abstract
The aim of this paper is to assess whether there is a bubble in the American Student Loan Debt Market. Given some stylized facts that provide analogies between Student Loans Market and House Mortgages Market of 2008, I can counter-factually assume the existence of a bubble. For the empirical investigation, I use as a proxy for the entire market the non-AAA ABS issued on Student Loan Debt. Student Loan ABSs allow for the replication of the Time Varying VAR proposed by Gal and Gambetti (2015) with higher frequency data. Gal and Gambetti (2015) proved that a restrictive monetary policy would inflate the eventual bubble according with Theory of Rational Bubble. Empirical analysis con rms the existence of a bubble in Student Loan Debt Market.I documenti in IRIS sono protetti da copyright e tutti i diritti sono riservati, salvo diversa indicazione.
