Shiller, Robert J.; Wojakowski, Rafał M.; Ebrahim, M. … - In: Journal of Economic Behavior & Organization 85 (2013) C, pp. 269-285
This paper models Continuous Workout Mortgages (CWMs) in an economic environment with refinancings and prepayments. CWMs are home loans whose balance and payments are indexed using a market-observable house price index of the pertaining locality. Our main results include: (a) explicit modelling...