WAITING TO DEFAULT - THE VALUE OF DELAY

被引：0
|
作者：
KAU, JB [1 ]
KIM, T [1 ]
机构：
[1] CALIF STATE UNIV LOS ANGELES,LOS ANGELES,CA 90032
来源：
JOURNAL OF THE AMERICAN REAL ESTATE AND URBAN ECONOMICS ASSOCIATION | 1994年 / 22卷 / 03期
关键词：
D O I：
暂无
中图分类号：
F8 [财政、金融];
学科分类号：
0202 ;
摘要：
This paper analyzes the opportunity for early termination of a mortgage contract. We consider the possibility of defaulting on the property and explore the rules that are used by a value-maximizing borrower in exercising this option to default. The discussion centers on the value of waiting to make such a decision and the consequences of this rational inertia. We show that the observed delay in default usually attributed to transaction costs can instead be explained as entirely rational choice in a dynamic environment.
引用
收藏
页码：539 / 551
页数：13
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