This paper studies the effect of monetary incentives on mortgage renegotiation. Lenders are sometimes willing to … not to modify the terms of the mortgage. The model is used to examine outcomes in the presence of monetary incentives … results show that, in the absence of monetary incentives, lenders renegotiate with a subset of homeowners who avoid …

is true, then the lessons to be learned from principal-agency theory are all the wrong ones. Concentrating on incentives …The canonical principal-agent problem involves a risk-neutral principal who must use incentives to motivate a risk … inefficient risk-sharing. These experimental outcomes, while anomalous from the standpoint of principal-agency theory, are quite …

incentives to implement such a trigger? We construct a theoretical model of a bank that is financed with debt and equity, and a …. However, we show that the board may implement a contract with insufficient incentives to communicate a warning, as refinancing …