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Loan guarantees for consumer credit markets
Athreya, Kartik B.; Tam, Xuan S.; Young, Eric R. - Federal Reserve Bank of Richmond - 2011
Loan guarantees are arguably the most widely used policy intervention in credit markets, especially for consumers. This may be natural, as they have several features that, a priori, suggest that they might be particularly effective in improving allocations. However, despite this, little is...
Persistent link: https://www.econbiz.de/10009320869
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Optimal personal bankruptcy design : A Mirrlees approach
Grochulski, Borys - Federal Reserve Bank of Richmond - 2008
In this paper, we develop a normative theory of unsecured consumer credit and personal bankruptcy based on the optimal … unsecured debts in bankruptcy. The structure of this equilibrium and the associated restrictions on debt discharge closely match … the main qualitative features of personal credit markets and bankruptcy law that actually exist in the United States. …
Persistent link: https://www.econbiz.de/10005717282
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Are harsh penalties for default really better?
Athreya, Kartik B.; Tam, Xuan S.; Young, Eric R. - Federal Reserve Bank of Richmond - 2009
How might society ensure the allocation of credit to those who lack meaningful collateral? Two very different options that have each been pursued by a variety of societies through time and space are (i) relatively harsh penalties for default and, more recently, (ii) loan guarantee programs that...
Persistent link: https://www.econbiz.de/10005009950