This paper investigates the value of the prepayment option that normally accompanies a fixed-rate mortgage. Using the two-state option-pricing model developed by Bartter and Rendleman, the paper presents simulations of prepayment option values using several sets of interest rate parameters. The...

The Seattle and Denver Income Maintenance Experiments were the only negative income tax experiments to test the efficacy of counseling and training subsidies in limiting the expected program-induced reductions in work effort. The program had two components: free counseling services and a program...