We specify and estimate a lifecycle model of consumption, housing demand and labor supply in an environment where 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...

Burns and Mitchell (1946, 109) found a recession of “exceptional brevity and moderate amplitude.” I confirm their judgment by examining a variety of high-frequency, aggregate and cross-sectional data. Industrial output fell sharply but rebounded within months. Retail seemed little affected...

The Chapter 7 bankruptcy code was motivated by the notion of a "fresh start," which was justified in part by the Supreme Court on the grounds that it would encourage work incentives. We ask the question, "how does a fresh start affect labor supply?" This question is explored in the context of a...