RDP 2013-05: Liquidity Shocks and the US Housing Credit Crisis of 2007–2008
Equation (3)
Δ
L
i
j
=
α
0
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S
U
B
P
R
I
M
E
i
j
′
α
1
+
D
I
S
T
A
N
C
E
i
j
′
α
2
+
S
A
L
E
S
H
A
R
E
i
′
β
0
+
S
U
B
P
R
I
M
E
i
j
∗
S
A
L
E
S
H
A
R
E
i
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β
1
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D
I
S
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A
N
C
E
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∗
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A
L
E
S
H
A
R
E
i
′
β
2
+
Δ
X
i
j
′
ϕ
+
Δ
η
j
+
Δ
ε
i
j
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