credit. To tackle this question, we incorporate overoptimistic borrowers into an incomplete markets model with consumer … evaluate several policies to address these frictions: reducing the cost of default, increasing borrowing costs, imposing debt … limits, and providing financial literacy education. While some policies lower debt and filings, they do not reduce …

We investigate the welfare consequences of consumer credit regulation in a dynamic, heterogeneous-agent model with … endogenous lender market power. We incorporate a decentralized credit market with search and incomplete information frictions … into an off-the-shelf Eaton-Gersovitz model of consumer credit and default. Lenders post credit offers and borrowers apply …

hypothesis of safe asset shortage-induced excess credit booms and financial instability. As an alternative step forward from the … safe asset demand. Based on the long-run trends of aging and government debt, I newly construct a safe asset shortage index …. Using the index, the consecutive empirical exercises confirm the positive relationship of safe asset shortage-credit …

hypothesis of safe asset shortage-induced excess credit booms and financial instability. As an alternative step forward from the … safe asset demands. Based on the long-run trends of aging and government debt, I construct a new safe asset shortage index …. Using the index, consecutive empirical exercises confirm the positive relationship of safe asset shortage-credit expansion …

. The attractiveness of bonds as liquidity makes aggregate bond demand downward-sloping, so that greater bond supply raises …