Browsing FAS Scholarly Articles by Keyword "normative economics"
Now showing items 1-1 of 1
-
Optimal Mortgage Refinancing: A Closed Form Solution
(The Ohio State University, 2012)We derive the first closed-form optimal refinancing rule: Refinance when the current mortgage interest rate falls below the original rate by at least \(\frac{1}{ψ}\)[φ + W (− exp (−φ))]. In this formula W(.) is the Lambert ...