We derive the financial market return implications of a number of models of an insurer faced with different regulatory regimes and differing access to financial markets for added capital. If insurers have unhindered access to financial markets and insurance regulation requires an immediate...

We derive the optimal economic ruin boundary for an insurer when regulation requires an immediate capital contribution to offset a capital deficit. This boundary establishes the financial conditions under which shareholders no longer add capital to a distressed insurer. We describe this event as...

Personal preferences and financial incentives make homeownership desirable for most families. Once a home is purchased they find it impractical (costly) to frequently change their ownership of residential real estate. Thus, by deciding how much home to buy, a family constrains their ability to...

This paper investigates the impact of spatially correlated unobservable variables on the refinancing, selling, and default decisions of mortgage borrowers. Virtually the entire mortgage literature acknowledges that borrower specific characteristics, such as culture, education, or access to...

Personal preferences and financial incentives make homeownership desirable for most families. Once a family purchases a home they find it impractical (costly) to frequently change their ownership of residential real estate. Thus, by deciding how much home to buy, a family constrains their...

We investigate the economics of real estate investment when maintenance of a property enhances neighborhood value. Because a property owner does not recognize this positive externality for his/her neighbor, he/she under-maintains. Smaller properties benefit most from this externality. We show...