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.
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.
