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by durables whereas unsecured debt can be discharged in bankruptcy procedures. We show that the model matches the main … exemptions in bankruptcy procedures have very small effects on the equilibrium. -- Household debt portfolios ; Durables … ; Collateral ; Income risk ; Bankruptcy …
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; bankruptcy ; failure ; survival ; exit …
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individuals may file for bankruptcy or default on their mortgage. Uncertainty in the model is driven by house price shocks …, education specific productivity shocks, and catastrophic consumption events, while bankruptcy is governed by the basic … Bankruptcy policy. …
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During the Great Recession, the collapse of consumption across the U.S. varied greatly but systematically with house-price declines. We find that financial distress among U.S. households amplified the sensitivity of consumption to house-price shocks. We uncover two essential facts: (1) the...
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