Some theories predict that firms with higher financial leverage compete more aggressively in product markets than firms with lower financial leverage, whereas others predict that lower-leverage firms compete more aggressively than higher-leverage firms. This paper studies how incumbent airlines'...

Many studies documented that actual asset-price movements exhibit momentum and reversion to fundamentals. We study real estate markets and find that households' subjective house-price expectations capture momentum but not reversion to fundamentals. Moreover, if current house prices are deviated...

We study a new type of securitization, mortgage-receivable-backed securities (MRBSs) issued by real estate developers. Unlike traditional mortgage-backed securities (MBSs), the major risk of underlying assets of MRBSs is payment delay instead of default and prepayment. Using unique loan-level...

If mortgage borrowers default strategically, their future house price expectations should affect their present mortgage default decisions. Merging the Freddie Mac loan performance dataset with the Michigan Survey of Consumers data containing households' subjective expectations, this paper...

Households are forward-looking when deciding whether to default on or refinance their mortgages. There are two types of default generated by two mechanisms: illiquidity-triggered default and strategic default. However, researchers can observe only whether households default but not whether the...

Reverse mortgages have been obtained by nearly one million senior households. In the future, the number of eligible households will grow substantially, about 80 percent are homeowners, and many of them have substantial equity in their home. We study state-level variations in rate of originations...

Investigating a unique large dataset, we find that automobile insurance policyholders are more likely to encounter accidents during the last month of the insurance policy term than during any other month. Our interpretation is that this effect is driven by the sunk cost fallacy held by...

Researchers are accustomed to choose the beginning of the year as the starting point to filter the recent literatures when they retrieve. This paper considers that the custom described above will lead to the Influential Trap which says that papers published at the year-end are less influential...

Based on the definition of health care disparities in international health economic academia, the paper adopts the method of counterfactual analysis, using cross-section data of CHNS2009, to make a precise calculation of the inequity section of the urban-rural differences in health care, which...