An Economic Theory of Mortgage Redemption Laws
Matthew Baker (),
Thomas Miceli () and
C. F. Sirmans
Additional contact information
C. F. Sirmans: University of Connecticut
No 2004-26, Working papers from University of Connecticut, Department of Economics
Redemption laws give mortgagors the right to redeem their property following default for a statutorily set period of time. This paper develops a theory that explains these laws as a means of protecting landowners against the loss of non-transferable values associated with their land. A longer redemption period reduces the risk that this value will be lost but also increases the likelihood of default. The optimal redemption period balances these effects. Empirical analysis of cross-state data from the early twentieth century suggests that these factors, in combination with political considerations, explain the existence and length of redemption laws.
JEL-codes: K11 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-law and nep-reg
References: View references in EconPapers View complete reference list from CitEc
Citations View citations in EconPapers (2) Track citations by RSS feed
Downloads: (external link)
http://web2.uconn.edu/economics/working/2004-26.pdf Full text (application/pdf)
Journal Article: An Economic Theory of Mortgage Redemption Laws (2008)
Working Paper: An Economic Theory of Mortgage Redemption Laws (2006)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: http://EconPapers.repec.org/RePEc:uct:uconnp:2004-26
Access Statistics for this paper
More papers in Working papers from University of Connecticut, Department of Economics University of Connecticut 365 Fairfield Way, Unit 1063 Storrs, CT 06269-1063. Contact information at EDIRC.
Series data maintained by Mark McConnel ().