Observed mortgage prepayment and default rates have been far different than the ruthless option exercise rates predicted by contingent claims models of mortgage pricing. The discrepancies have been attributed to both the competing-risk nature of prepayment and default and to transactions costs....

An empirical analysis of macroeconomic time series from the mortgage, housing, capital and labor markets is based on life-cycle consumption and mortgage option pricing considerations. Vector autoregression techniques characterize the long-run equilibrium and short-run dynamics of the mortgage...

Deep, complex interdependencies exist between the capital, mortgage, housing, and labor markets. A life cycle consumption model of durable housing and mortgage demand and an option pricing model of mortgage supply capture the macroeconomic relationships among the markets. A vector autoregressive...

Observed mortgage prepayment and default rates have been far different than the ruthless option exercise rates predicted by contingent claims models of mortgage pricing. The discrepancies have been attributed to both the competing risk nature of prepayment and default and to transactions costs....

Observed mortgage prepayment and default rates have been far different than the ruthless option exercise rates predicted by contingent claims models of mortgage pricing. The discrepancies have been attributed to both the competing risk nature of prepayment and default and to transactions costs....

The decentralization of employment from central cities to the suburbs in U.S. metropolitan areas has been an active area of research in urban economics for many years. A key policy question has been whether the location and relocation decisions of firms are significantly influenced by state and...