In an increasingly global investment climate, mobile capital interested in residential investment generally seeks the highest return on invested capital (cap rate). However, we observe a very large range in these values. Systematic differences may be explained by tax rates, demographics,...

Screening equilibria, mainly those a la Rothchild-Stiglitz(1976), have been widely used to explain various aspects of mortgage contracting. In the real world, however, most mortghage contracting processes involve both signalling and screening. In this paper, we combine signalling and screening...