The Relative Termination Experience of Adjustable to Fixed-Rate Mortgages

Our study uses a multinomial logit model to analyze the concurrent termination experience of adjustable-rate and fixed-rate mortgages. A new set of ARM-specific interactive determinants expands the conventional FRM specification to isolate the unique termination behavior of ARMs. We find that expected rate adjustments and large lifetime caps are positively related to ARM termination probabilities while long adjustment frequencies are inversely related. Caps, both periodic and lifetime, have a secondary, inverse effect on termination probabilities when interest-rate movements exceed cap limits. The model also shows that interest-rate expectations affect FRM terminations more strongly than ARM terminations.     

Can there be a social contract with business?

Professor Donaldson in his book Corporations and Morality has attempted to use a social contract theory to develop moral principles for regulating corporate conduct. I argue in this paper that his attempt fails in large measure because what he refers to as a social contract theory is, in fact, a weak functionalist theory which provides no independent basis for evaluating business corporations. I further argue that given the nature of a morality based on contract and the nature of the modern corporation, it is highly unlikely that any plausible contract theory of business ethics can be developed.Dr. Hodapp is an associate professor of philosophy at The University of Northern Colorado where he teaches courses in business ethics and legal philosophy. He earned a doctorate at Washington University, St. Louis. Dr. Hodapp also has a law degree from The University of Denver and practices law with a Denver law firm specializing in management labor relations.     

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Ohne ZusammenfassungÜbersetzt von Paul Brüll