Automatic Workout Mortgage and Housing Consumption Choice

IF 2.3 4区经济学 Q2 BUSINESS, FINANCE

International Review of Finance Pub Date : 2026-07-05 DOI:10.1111/irfi.70085

Robert J. Shiller, Rafal M. Wojakowski, M. Shahid Ebrahim, Mark B. Shackleton

引用次数: 0

Abstract

This paper further develops the Automatic Workout Mortgage (AWM) which embeds an insurance put option to reduce negative equity, systemic risk and promote economic recovery. We introduce a mathematical model showing that AWM raises household utility and increases housing demand. Without AWM, households stabilize at about 40% equity when considering reverse mortgages; with AWM, demand peaks at 80%. The insurance feature lowers precautionary saving, making housing more attractive to risk-averse borrowers. AWM boosts expected utility by roughly 33% of optimal housing consumption without AWM and protects home equity, improving future housing affordability and retirement-phase resilience.

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自动锻炼抵押贷款和住房消费选择

本文进一步发展了嵌入保险看跌期权的自动履约抵押贷款（AWM），以减少负资产和系统性风险，促进经济复苏。我们引入了一个数学模型，表明AWM提高了家庭效用，增加了住房需求。如果没有AWM，在考虑反向抵押贷款时，家庭净资产稳定在40%左右；对于AWM，需求峰值为80%。保险功能降低了预防性储蓄，使住房对厌恶风险的借款人更具吸引力。在没有AWM的情况下，AWM将预期效用提高了约33%，并保护了房屋净值，提高了未来的住房负担能力和退休阶段的弹性。

本文章由计算机程序翻译，如有差异，请以英文原文为准。

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来源期刊

International Review of Finance BUSINESS, FINANCE-

CiteScore

3.30

自引率

5.90%

发文量

期刊介绍： The International Review of Finance (IRF) publishes high-quality research on all aspects of financial economics, including traditional areas such as asset pricing, corporate finance, market microstructure, financial intermediation and regulation, financial econometrics, financial engineering and risk management, as well as new areas such as markets and institutions of emerging market economies, especially those in the Asia-Pacific region. In addition, the Letters Section in IRF is a premium outlet of letter-length research in all fields of finance. The length of the articles in the Letters Section is limited to a maximum of eight journal pages.