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Daily Archives: August 11, 2013

Unemployment, Negative Equity, and Strategic Default

Unemployment, Negative Equity, and Strategic Default – Kristopher Gerardi, Kyle F. Herkenhoff, Lee E. Ohanian, and Paul S. Willen. Federal Reserve Bank of Atlanta. Working Paper 2013-4. August 2013

“Using new household-level data, we quantitatively assess the roles that job loss, negative equity, and wealth (including unsecured debt, liquid assets, and illiquid assets) play in default decisions. In sharp contrast to prior studies that proxy for individual unemployment status using regional unemployment rates, we find that individual unemployment is the strongest predictor of default. We find that individual unemployment increases the probability of default by 5–13 percentage points, ceteris paribus, compared with the sample average default rate of 3.9 percent. We also find that only 13.9 percent of defaulters have both negative equity and enough liquid or illiquid assets to make one month’s mortgage payment. This finding suggests that “ruthless” or “strategic” default during the 2007–09 recession was relatively rare and that policies designed to promote employment, such as payroll tax cuts, are most likely to stem defaults in the long run rather than policies that temporarily modify mortgages.”

Text & Data Mining – A Librarian Overview

Text & Data Mining – A Librarian Overview, Ann Okerson – Senior Advisor, Center for Research Libraries, Chicago IL, USA “Text and data mining offers exciting research opportunities over a broad range of fields. As large corpora of data accumulate, automated and semi-automated analysis of their contents (and often of many different data sets correlated… Continue Reading

Brookings Examines John Roberts Appointments to FISA Court

Russell Wheeler: “Among his non-judicial duties, the Chief Justice of the United States selects sitting federal judges to serve on the Foreign Intelligence Surveillance Court in addition to their regular judicial duties. A recent New York Times article reported that ten of the court’s 11 current  judges, all selected by Chief Justice John G. Roberts,… Continue Reading

Social Influence Bias: A Randomized Experiment

Social Influence Bias: A Randomized Experiment Lev Muchnik, Sinan Aral, Sean J. Taylor. Science 9 August 2013: Vol. 341 no. 6146 pp. 647-651 DOI: 10.1126/science.1240466 “Our society is increasingly relying on the digitized, aggregated opinions of others to make decisions. We therefore designed and analyzed a large-scale randomized experiment on a social news aggregation Web… Continue Reading

Predatory Patent Litigation

Predatory Patent Litigation. Erik N. Hovenkamp, Northwestern University Department of Economics. August 5, 2013. “Despite their extensive experience in patent litigation, the most litigious patent assertion entities (PAEs) fair relatively poorly in court. These firms commonly file dubious infringement claims on which they are ostensibly very likely to lose money if litigated to judgment. It… Continue Reading

Study – Common Chemicals Harm Honey Bees’ Health

“Commercial honey bees used to pollinate crops are exposed to a wide variety of agricultural chemicals, including common fungicides which impair the bees’ ability to fight off a potentially lethal parasite, according to a new study by researchers at the University of Maryland and the U.S. Department of Agriculture. The study, published July 24 in… Continue Reading