Ontology highlight
ABSTRACT:
SUBMITTER: Gerardi K
PROVIDER: S-EPMC3710828 | biostudies-other | 2013 Jul
REPOSITORIES: biostudies-other
Gerardi Kristopher K Goette Lorenz L Meier Stephan S
Proceedings of the National Academy of Sciences of the United States of America 20130624 28
Unprecedented levels of US subprime mortgage defaults precipitated a severe global financial crisis in late 2008, plunging much of the industrialized world into a deep recession. However, the fundamental reasons for why US mortgages defaulted at such spectacular rates remain largely unknown. This paper presents empirical evidence showing that the ability to perform basic mathematical calculations is negatively associated with the propensity to default on one's mortgage. We measure several aspect ...[more]