The Borrower's Choice between Fixed and Adjustable Rate Loan Contracts
研究了通货膨胀与实际收入、实际资产价值之间的协方差如何影响借款人在固定利率与可调利率贷款之间的选择，并扩展至可调利率合同，发现协方差方向决定偏好。
Previous research indicates that key variables in the choice between fixed and price index‐linked debt are the covariances between inflation and real income and between inflation and the real value of the asset financed by the debt. This model extends those results to adjustable rate loan contracts and examines the impact of covariance between the real interest rate and, in turn, real income and real asset values. Positive (negative) covariance between those terms shifts preference toward the adjustable (fixed) loan contract.