Mortgages are one-sided contracts under which the borrower may terminate the contract at any time, while the lender must commit to honoring the terms of the contract throughout its life. There are two aspects to this feature of the contract that are modeled in this paper. The first is that the...

This paper examines an equilibrium growth model drawn from the quot;class of intermediate modelsquot; [Lucas (1988, p 27)], for which long run growth is in part endogenously determined through investment in human capital, and in part exogenously determined through Solow residual growth. To take...