Academic Papers & Studies

Loan Value Group’s product offerings are heavily influenced by behavioral economic theory. Below you will find some literature surrounding the nature of strategic default and incentivization. To receive more literature and learn more about Loan Value Group’s value proposition, please contact us.

A 2010 paper by Alex Edmans explains how the Responsible Homeowner Reward is a unique solution to the growing problem of strategic default.

A 2009 survey by Guiso, Sapienza, and Zingales (469K) finds that 26% of existing defaults are strategic. Respondents who know someone who strategically defaulted are 82% more likely to state their intention to do so, suggesting contagion effects.