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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 PDF (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.