Should the law restrict liability of defaulting borrowers? We abstract from possible benefits arising from limited rationality or risk-aversion of borrowers, contractual incompleteness, or lender moral hazard. We focus instead on general equilibrium implications of liability rules with moral...

We examine the implications for estimates of wage relativities and inequality when countries experience wage arrears on a substantial scale, using the Russian labour market as a test case. The increase in wage inequality in Russia during its transition process has far exceeded the increase in...

We define a class of margin loans and derive the distribution of defaults. The default risk from an individual loan can be priced as a series of forward starting options with a knockout. Under simple price dynamics this has an explicit solution

We use an agent-based stock-flow consistent model of a closed economy without technological change that considers different classes of households, status consumption and a Minskyan banking sector to analyze the relationship between rising saving rates, the accumulation and distribution of...