Via the Irish Economy Blog, below is a recent paper from the IMF on government's role in household debt restructuring. I commented on the IE Blog that the Irish case has a number of structural features that merit further discussion. Another feature of the document is the fairly minor extent to which evidence from microeconometrics and behavioural economics is used. This is not neccesarily a criticism but it would be worth looking at the issue of household debt restructuring from a behavioural perspective including examining issues like mental accounting, cognitive complexity and procrastination. In general, including a few papers like this on the internal journal club schedule with a view to discussing the extent to which behavioural and microeconometric research should shape mortgage and related policies would be worthwhile.
http://www.imf.org/external/pubs/ft/spn/2009/spn0915.pdf
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