Showing 1 - 10 of 43
access to unsecured credit (because of bankruptcy costs) and aggregate shocks, we show that the cyclical behavior of … credit match the sizes of credit and bankruptcy volatilities. We also find that when the right to file for bankruptcy does …
Persistent link: https://www.econbiz.de/10012197797
This paper assesses the relative importance of two key drivers of mortgage default: negative equity and illiquidity. To do so, the authors combine loan-level mortgage data with detailed credit bureau information about the borrower's broader balance sheet. This gives them a direct way to measure...
Persistent link: https://www.econbiz.de/10013133615
In many countries, lenders are restricted in their access to information about borrowers' past defaults. The authors study this provision in a model of repeated borrowing and lending with moral hazard and adverse selection. They analyze its effects on borrowers' incentives and access to credit,...
Persistent link: https://www.econbiz.de/10013114975
lent first are given priority in any bankruptcy or restructuring proceedings. The goal of this paper is to incorporate …
Persistent link: https://www.econbiz.de/10013105244
bankruptcy filers. In particular, our data allow us to distinguish between Chapter 7 and Chapter 13 bankruptcy filings, to … after bankruptcy filing, most filers have much reduced access to credit in terms of credit limits, and the impact seems to …). Our results, in contrast to prior studies, thus suggest that the current bankruptcy system does not appear to provide much …
Persistent link: https://www.econbiz.de/10013081474
How does physical capital accumulation affect the decision to default in developing small open economies? We find that, conditional on a level of foreign indebtedness, more capital improves the sovereign's ability to meet its obligations, reducing the likelihood of default and the risk premium....
Persistent link: https://www.econbiz.de/10013082017
In the data, most consumer defaults on unsecured credit are informal and the lending industry devotes significant resources to debt collection. We develop a new theory of credit card lending that takes these two features into account. The two key elements of our model are moral hazard and costly...
Persistent link: https://www.econbiz.de/10013083014
Rapid house-price depreciation and rising unemployment were the main drivers of the huge increase in mortgage default during the downturn years of 2007 to 2010. However, mortgage default was also partly driven by an increased reliance on alternative mortgage products such as pay-option ARMs and...
Persistent link: https://www.econbiz.de/10013076005
In this paper, we ask how bankruptcy law affects the financial decisions of corporations and its implications for firm … dynamics. According to current U.S. law, firms have two bankruptcy options: Chapter 7 liquidation and Chapter 11 reorganization … to include both bankruptcy options in a general equilibrium environment. Finally, we evaluate a bankruptcy policy change …
Persistent link: https://www.econbiz.de/10012953790
Bankruptcy reform in 2005 restricted debtors' ability to discharge private student loan debt. The reform was motivated … by the perceived incentive of some borrowers to file bankruptcy under Chapter 7 even if they had, or expected to have … borrowers distinctly adjusted their Chapter 7 bankruptcy filing behavior in response to the reform. We do not find evidence to …
Persistent link: https://www.econbiz.de/10012944301