Nokia relaunches model from 2000 » Mortgage Masters Group

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A Model of Mortgage Default John Y. Campbell, Joo F. Cocco. NBER Working Paper No. 17516 Issued in October 2011 NBER Program(s):Asset Pricing, Corporate Finance, Monetary Economics This paper solves a dynamic model of a household’s decision to default on its mortgage, taking into account labor income, house price, inflation, and interest rate risk.

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