This paper documents extensive commitment to mandatory debt repayment. In a natural experiment in which households can apply for free mortgage-payment flexibility for one to twelve months, 43 percent of applicants choose a dominated option of short flexibility. I argue that short flexibility...

Debt moratoria that allow borrowers to postpone loan payments are a frequently used tool intended to soften the impact of economic crises. This paper reports results from a nationwide experiment with a large consumer lender in India, designed to study how debt forbearance offers affect loan...

The year 2008 witnessed failure of major banks in USA and Europe fueling liquidity crisis and generating unprecedented depression worldwide. Countries across the world applied coordinated remedial efforts such as low interest rate and pumping stimulus money into the economy. The response was...