Campbell, JohnRamadorai, TarunRanish, Benjamin2014-05-092012Campbell, John Y., Tarun Ramadorai, and Benjamin Ranish. 2012. How Do Regulators Influence Mortgage Risk? Evidence from an Emerging Market. NBER Working Paper No. 18394, National Bureau of Economic Research.0898-2937http://nrs.harvard.edu/urn-3:HUL.InstRepos:12168178To understand the effects of regulation on mortgage risk, it is instructive to track the history of regulatory changes in a country rather than to rely entirely on cross- country evidence that can be contaminated by unobserved heterogeneity. However, in developed countries with fairly stable systems of financial regulation, it is difficult to track these effects. We employ loan-level data on over a million loans disbursed in India over the 1995 to 2010 period to understand how fast-changing regulation impacted mortgage lending and risk. We use cross-sectional differences in the time- series variation of delinquency rates, conditional on initial interest rates, to detect the effects of regulation on mortgage delinquencies.en-USJournal Article2014-04-222014-05-0910.3386/w18394