White on Strategic Default

Brent White (Arizona) has posted Preventing Strategic Default: Lessons from Japan (Arizona J. of Int'l and Comparative Law) on SSRN.  Here's the abstract:

When individuals purchase homes as investments, they experience pronounced anxiety when home prices decline. This anxiety pushes a significant number of homeowners to strategically default. But, as Japan shows, strategic default can be controlled by managing homebuyers’ expectations, and thus their anxiety, ex ante at the time of purchase.

Steve Clowney