Guiso, Luigi; Sapienza, Paola; Zingales, Luigi - C.E.P.R. Discussion Papers - 2009
value of their house even if they can afford to pay their mortgage (strategic default). We find that 26% of the existing … reaches 50% of the value of their house. Besides relocation costs, the most important variables in predicting strategic … default are moral and social considerations. Ceteris paribus, people who consider it immoral to default are at 77% less likely …