Central to the field of consumer finance is that consumers make financial decisions that do not always coincide with the financial decisions ideally depicted in optimal economic models. In this review, we discuss developments in the field of household finance, focusing on how consumers make...

Central to the field of consumer finance is that consumers make financial decisions that do not always coincide with the ideal financial decisions ideally depicted in optimal economic models [Campbell, 2006]. In this review, we discuss developments in the field of household finance,...

Revised Oct 2016. We test the hypothesis that income inequality causes financial distress. To identify the effect of income inequality, we examine lottery prizes of random dollar magnitudes in the context of very small neighborhoods (13 households on average). We find that a C$1,000 increase in...