Chatterjee, Satyajit; Corbae, Dean; Ríos-Rull, … - In: Journal of Economic Theory 142 (2008) 1, pp. 149-177
We present a theory of unsecured consumer debt that does not rely on utility costs of default or on enforcement mechanisms that arise in repeated-interaction settings. The theory is based on private information about a person's type and on a person's incentive to signal his type to entities...
