C. Sean Hundtofte

Fields of interest:  
Household Finance, Behavioural Economics & Finance, Financial Distress, Banking and Real Estate

Office address: 
Suite 3220 Evans Hall, P.O. Box 208200, New Haven CT 06520-8200

sean.hundtofte 'at' yale.edu

Working Papers
    • No Such Thing as a Free Option? Loan Modifications and Mortgage Borrower Outcomes
      • Analysis of the effects of offering debt relief to delinquent mortgage borrowers.
    • Non-strategic Mortgage Borrower Behaviour: Sending Letters Can Improve Outcomes
      • I use a field experiment to explore the role of non-strategic factors in the exercise of two key options available to a mortgage borrower: default and prepayment. Simple low-cost treatments increase prepayments in the short-run and decrease contractual delinquency in the long-run. I propose a Prospective Memory-based explanation of both facts. I find the gradual decrease in defaults cannot be explained by option-exercise or dual trigger models of default, and the temporary increase in prepayments cannot be explained by popular models of “rational inattention”.
    • The Banks That Could Not Fail
      • Analysis of the real effects of "regulatory forbearance", lifting regulatory restrictions and failing to fail troubled banks, during a banking crisis.
    • Relative Price

      ≠ Relative Value: Context Affects Returns in Sports Betting Markets

       with Andrew Meyer
      • We test for a compression in gambling odds.  Results from the market data and also from the lab are consistent with contrast effects. The appeal of a particular gamble appears to be influenced by the returns available on similar - but completely independent - outcomes.
    • Compare and Contrast Effects  
      • Inspired by the positive results for contrast effects in gambling markets, I test for a compression in equity valuations and find that early equity valuations appear to be anchored to industry comparables.
Feel free to contact me for the latest draft of these papers.