Ross, Zhou Release Working Paper on Documenting Loss Aversion using Evidence of Round Number Bias

Stephen Ross, CFS Affiliate and Professor in the Department of Economics at University of Connecticut, along with his co-author Tingyu Zhou, Assistant Professor in the Department of Risk Management/Insurance, Real Estate, and Legal Studies at Florida State University, release working paper that builds on existing literature documenting loss aversion in the housing market, where expected losses lead to higher sales prices. Ross and Zhou study how exposure to expected losses may correlate with unobservables that influence housing prices.

Newly Released Paper and Brief: Does State-mandated Financial Education Affect Financial Well-being?

This paper and brief, authored by Jeremy Burke, J. Michael Collins, and Carly Urban, estimates the causal effect of required high school financial education on the financial well-being of young adults. Financial well-being includes people’s subjective sense of financial management, as well as their confidence in achieving their unique financial goals. This study shows that financial education improves financial well-being, though benefits accrue primarily to men and those who obtain college degrees.

This paper and brief, authored by Jeremy Burke, J. Michael Collins, and Carly Urban, estimates the causal effect of required high school financial education on the financial well-being of young adults. Financial well-being includes people’s subjective sense of financial management, as well as their confidence in achieving their unique financial goals. This study shows that financial education improves financial well-being, though benefits accrue primarily to men and those who obtain college degrees. The research was supported by a grant from the FINRA Investor Education Foundation.

Newly Released Brief & Working Paper on Foreclosure Spillovers within broad Neighborhoods

CFS Research Fellow and Professor of Economics at the University of Connecticut, Stephen Ross, along with his co-authors Weiran Huang of the Department of Finance in NYC and Ashlyn Nelson from Indiana University Bloomington, have released a working paper and policy brief that examine the spillover effects of foreclosure within broad neighborhoods.

Affiliate Researcher, Stephen Ross, Publishes Article in Housing Policy Debate Journal & Releases Accompanying Policy Brief

Stephen Ross,
Professor of Economics,
University of Connecticut

In their recently published Housing Policy Debate article, co-authors Stephen Ross and Marsha Courchane present an overview of the research on discrimination in mortgage underwriting and pricing, the experiences of minority borrowers both prior to and during the financial crisis, and federal efforts to mitigate foreclosures during the crisis. They discuss the history of legal cases alleging disparate treatment of minority borrowers, and recent cases alleging disparate impact in the wake of the Supreme Court’s Inclusive Communities decision. Using these discussions as a background, Ross and Courchane examine and discuss mortgage regulations issued by the Consumer Financial Protection Bureau following the financial crisis, describe recent developments in the FinTech industry and explore the implications for fair lending policy and minority borrowers more generally. The authors draw conclusions and make recommendations for improving the mortgage market outcomes of minority borrowers and increasing minority borrowers’ access to credit.

Financial Coaching and Medication Adherence: Introducing the “FINMed” Coaching Model

The report introduces a new intervention called “FINMed.” FINMed is brief, solution-focused financial coaching session designed for people facing new ongoing out-of-pocket medical expenses or a pattern of problems paying for ongoing health care needs. The coaching involves:

  • Determining the patient’s health goals and motivation
  • Planning for the costs of health care
  • Setting up a process to make sure the patient will have the funds needed when the next set of care (e.g., refill or therapy session) is due

This reports present research into the relationship between household financial behaviors and the ability to pay for out-of-pocket medical expenses, particularly prescription drugs. Overall, households struggling to manage their finances appear more likely to skip medical treatments due to cost. In turn, failing to follow through on a medical treatment can lead to higher costs and worsening health status.

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