Research
The Financial Consequences of Undiagnosed Memory Disorders
New York Fed Staff Reports (May 2024). We examine the effect of undiagnosed memory disorders on credit outcomes using nationally representative credit reporting data merged with Medicare data. Years prior to eventual diagnosis, average credit scores begin to weaken and payment delinquency begins to increase, overall and for mortgage and credit card accounts specifically. Credit outcomes consistently deteriorate over the quarters leading up to diagnosis. The harmful financial effects of undiagnosed memory disorders exacerbate the already substantial financial pressure households face upon diagnosis of a memory disorder. Our findings substantiate the possible utility of credit reporting data for facilitating early identification of those at risk for memory disorders.
Abstract Readability: Evidence from Top-5 Economics Journals
Economics Letters (Feb 2024). Readability is a measure of how easy it is to read a text. Over time, general-interest journals have become more technical. This affects how accessible research is to a general audience. Our analysis looks at how readable abstracts are. We study the readability of abstracts of top five economics journals between 2000–2019. We collect the characteristics of the abstracts, papers, and authors of these papers. We find that abstracts with higher proportion of women co-authors are more readable. These results are robust to various readability measures and model specifications.
The State of Low Income America -- Credit Access & Housing
New York Fed Research and Community Development joint report (Jan 2024). The COVID-19 Public Health Emergency ended in May 2023 and with it many of the financial supports that sustained American households during the crisis. For low-income Americans, significant fiscal transfers in 2020 and 2021 reduced poverty levels. Low-income debt holders, who tended to have elevated debt delinquency levels prior to the pandemic, saw their delinquency rates – and credit scores – improve; the median credit score for borrowers in low-income areas went from 651 in Q4 2019 to 670 in Q3 2023.This report looks at which groups have fallen behind on debt payments and discuss whether rising delinquencies are concentrated amongst certain groups or broader based
Credit Card Delinquencies Continue to Rise -- Who Is Missing Payments?
New York Fed Liberty Street Economics (Nov 2023). This post looks at which groups have fallen behind on debt payments and discusses whether rising delinquencies are concentrated amongst certain groups or broader based.
The State of Low Income America -- Credit Access & Debt Repayment
New York Fed Research and Community Development joint report (March 2023). In this report, we examine low-income households’ ability to access and keep current on debt obligations during the pandemic and recovery. Government fiscal transfers to households and significant government-mandated and private-sector debt relief during the pandemic have alleviated economic hardship for millions of Americans. With fiscal relief and debt-related moratoria waning, this report examines current debt holdings across income groups and points to indicators we intend to monitor throughout 2022.
Dose the Rise in Housing Prices Suggest a Housing Bubble?
New York Fed Liberty Street Economics post (Sept 2021). This post provides a more detailed look at the recent rise in home prices by breaking it down geographically, with a comparison to the pre-2007 bubble.
If Prices Fall, Mortgage Foreclosures Will Rise
New York Fed Liberty Street Economics post (Sept 2021). This post looks at the potential risks to financial stability by comparing the currently outstanding stock of mortgage debt to the period before the financial crisis and projecting defaults should prices decline.
