Braxton, John Carter; Chikhale, Nisha; Herkenhoff, Kyle; … - 2024
credit limits raise mobility by facilitating borrowing and investment among low-income households; (2) however, more lenient … dynastic, defaultable debt model to examine how the democratization of credit since the 1970s – modeled as both greater credit … limits and more lenient bankruptcy – affected intergenerational mobility. Surprisingly, we find that the democratization of …