Using agent-based simulation methods we explore the interplay between income distribution, personal insolvency … social comparison effects, the insolvency regime decides on lower income households' incentives to expose themselves to … observed distribution of income and wealth, we model them by means of a Generalised Pareto Distribution. In the presence of …

framework to formalize a theory that the variety and the functioning of markets reflect the status of national income. In the … framework is analytically tractable despite search frictions, income risks and endogenous money distributions. I use this … sufficiently high expected real income. Uninsurable idiosyncratic income risks cause households to endogenously sort into various …