Sergeyev, Dmitriy; Lian, Chen; Gorodnichenko, Yuriy - National Bureau of Economic Research - 2023
survey of U.S. households, we document the prevalence of financial stress in U.S. households and a strong relationship … dynamic model of consumption and labor supply. We emphasize two key results. First, a psychology-based theory of poverty traps … of financial stress. On the other hand, naifs dis-save, fall into a poverty trap, and incur high welfare losses. Second …