twitter logo

News

Housing costs have exacerbated income equality in Germany

CReAM Research by Christian Dustmann and co-authors finds that changes in housing expenditures dramatically exacerbated the rise in income inequality in Germany since the mid-1990s. The research was covered on the German press.

Press Release

Discussion Paper

VoxEU

FAZ

UCL News

Immigrant and disadvantaged children benefit most from early childcare

Attending universal childcare from age three significantly improves the school readiness of children from immigrant and disadvantaged family backgrounds.

Press Release

Discussion Paper

iNews

UCL News

FAZ

VoxEU

 

The Criminal Behaviour of Young Fathers

CReAM Research by Christian Dustmann and  Rasmus Landersø, finds that  very young fathers who have their first child while they are still teenagers subsequently commit less crime if the child is a boy than if it is a girl. This  then has a spill over effect on other young men of a similar age living in the same neighbourhoods as the young father. The research was covered on the British press.

Press Release

Discussion Paper

VoxEU

The Telegraph

The Times

 

BBC 2

"I was quite prepared... to use the cover of the statistician's analysis": Former home secretary David Blunkett and Prof Dustmann on the 2003 report on EU accession

 

Brexit

BBC Three Counties

Christian Dustmann discussing Theresa May's comments on EU workers 'jumping the queue' on BBC Three Counties.

CReAM seminar

CReAM - Seminar in Applied Economics Series
Michael Kremer (Harvard University)

'The Endowment Effect and Collateralized Loans'

Event date: Monday 26th November 2018
Time: 4:00-5:30 Place: Ricardo LT Speaker Room: 224

This project tests a novel theoretical mechanism for low take-up of collateralized credit. Using a field experiment with a lender in Kenya, we vary whether already-owned assets serve as collateral, or whether instead the new asset being financed by the loan itself serves as collateral, as in car loans. The experimental design holds everything except existing ownership of the collateral constant. We find that borrowers display an endowment effect over their existing assets, and thus dislike loans that place existing assets at risk of loss by providing them as collateral. They are willing to pay 8% per month higher interest to instead collateralize using the new asset being financed by the loan itself. We next show that borrowers systematically under-predict their future attachment to new assets. After taking a loan collateralized with a new asset, borrowers become attached to the new asset, and exert similar repayment effort to loans collateralized with existing assets. We develop and estimate a structural model to provide behavioral parameters and to better understand the welfare consequences of such loans.