hysteresis effects on a macroeconomic level. Based on our simple model we are able to obtain some conclusions about the efficacy …

The risk of default that business firms face is very significant and differs widely across countries. This paper … explores the links between countries' business conditions and international trade embedment and the default risk at the country … level from a theoretical point of view. Our main contribution is to set up a general equilibrium model which allows us to …

A personal bankruptcy law that allows for a "fresh start" after bankruptcy reduces the individual risk involved in … entrepreneurial activity. On the other hand, as risk shifts to creditors who recover less of their credit after a debtor's bankruptcy … forgiving personal bankruptcy law are less relevant for wealthy potential entrepreneurs who still risk losing their wealth, but …

How does small-firm employment respond to exogenous labor productivity risk? We find that this depends on the … depends on the weather. Weather risk reduces this employment, and the effect is stronger in regions where the regional banks …

We provide a model with endogenous portfolios of secured and unsecured household debt. Secured debt is collateralized … calibrated model matches important quantitative characteristics of observed wealth and debt portfolios for prime-age consumers in …

households reduce their financial risk exposure when confronted with background risk. Our novel modelling approach – termed a … deflated fractional ordered probit model – quantifies how the overall asset composition in a portfolio adjusts with background … risk, and is unique in recovering for, any given risky asset class, the shares that are reallocated to a safer asset …

macroeconomic model which reproduces this observation. The model predicts that the fiscal multiplier takes conventional values …

a model economy that replicates the current outcome with a loan rate cap and no lender discrimination by risk using a …We study the impact of loan regulation in rural India on child labor with an overlapping-generations model of formal … and informal lending, human capital accumulation, adverse selection, and differentiated risk types. Specifically, we build …

: the link between the household head's risk and time preferences and observed child labor supply. We develop a theoretical … model and empirically test for this causality using data from the seventh round of the Ethiopian Rural Household Survey. We … find child labor to be increasing in both higher adult discount rates and higher degrees of risk aversion, and this finding …

of some policy action ('investment'). We build an agency model that accounts for these tendencies. The optimal …