Strategic default and “borrower runs”: Stefan Trautmann, Razvan Vlahu, 28 August 2011
One of the most iconic images from the subprime mortgage crisis in 2007 was the queue of people outside the British bank Northern Rock demanding their deposits back. This column uses experimental evidence to discuss another type of bank run – a borrower run – when mortgage holders strategically default on their loans.
Full Article: Strategic default and “borrower runs”
One of the most iconic images from the subprime mortgage crisis in 2007 was the queue of people outside the British bank Northern Rock demanding their deposits back. This column uses experimental evidence to discuss another type of bank run – a borrower run – when mortgage holders strategically default on their loans.
Full Article: Strategic default and “borrower runs”
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