¶ … mortgage default (Elul, Souleles and Chomsisenghept). This model suggests that home owners should only ever default if they have negative equity in their residence. If there is negative equity, then there would be an incentive for the borrower to walk away from the property. However this also does not consider subsidiary effects such as the impact upon the person's credit or the possibility that the property could regain equity in the medium or long-term. Furthermore, other researchers have also proposed that other factors such as being illiquid would also provide a motive for someone to default on their mortgage. A combination of these two variables would also act to amplify the incentive to voluntarily default; and of course being so illiquid that there is no possibility to make a mortgage payment virtually guarantees that a default will occur.
Although this research paper does not necessarily define its hypothesis directly, it can be inferred that the authors are not quite content with the option model. Even though there is no economic incentive for borrowers to walk away from a property if it has equity, there are other variables that can also have an impact on this decision. Furthermore, it should also be noted that not all mortgage holders necessarily act rationally. Therefore, there could theoretically be decisions to default upon a mortgage based upon emotional or psychological criteria. However, these factors are difficult to study and this article seems to attempting to broaden the model for default beyond that of the comprehensiveness of the option model.
Data, Model and Statistical Tests
The purpose of this paper is to access the relative importance of two factors associated with mortgage defaults; negative equity and liquidity. To gather mortgage data, the researchers focused on loans that originated...
Pay Equity As American business enters the 21st century the issue of unequal pay for equal work continues. The course of attaining the objectives of just wages for all workers by eradicating the wage disparities between men and women workers is known as pay equity. It necessitates that the unequal jobs of comparatively same value to the employer is to be given the equal wages. Pay equity is considered to be a
Pay Equity 1001 EHR Tutorial Exercise Week No & Date: Corrections/refinement during tutorial discussion - feedback (Done in class) What explanations are given by this alliance to account for the gender-wage gap? What evidence is used to support this? Is it convincing? Why or why not? You might also like to look at the submissions made to Fair Work as part of the equal remuneration case. Submissions were also made by employers and employer associations
Zippittelli v. J.C. Penney Company Case Study Case Summary The case of Zippittelli v. J.C. Penney Company stems from a hiring dispute between the plaintiff, Joanne Zippittelli, and her employer, J.C. Penney Company. In the summer of 2004 the plaintiff worked for the defendant as a general lead clerk in the Call Service Center, and after being informed by her boss that the position of shift operations manager had become available, the
The other reason for higher salary is based on the performance of the employees. If the employee generates more revenue, they may be given higher compensation as a reward which will also act as an incentive for future improved performance. This is usually the case for sales department whereby the pay can be based on commission. Basing on the red-circling, higher compensation can be given to the employee i.e.
From the standpoint of the labor market, the lack of equity in the public system would continue to exist until the market force becomes united and demands a better protection of its rights. For now however, when the people fear the loss of their jobs and when the market place is saturated, the public employers are not pressured to implement equity. At the level of personal evaluation and job contributions,
AMSC had announced a letter of intent for secured debt financing in July of 2003 (AMSC 2003 Annual Report) when the stock was trading in the range of $8 per share. The blackout gave the firm's stock considerable momentum, and it finished the month of August up over 50% at $12.19 per share (MSN Moneycentral, 2010). Equity issues normally result in dilution of the stock price, since the issue
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