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 …

Should the law restrict liability of defaulting borrowers? We abstract from possible benefits arising from limited … equilibrium implications of liability rules with moral hazard among borrowers with varying wealth. If lenders are on the short … side of the market, weakening liability rules lower lender profits, may cause additional exclusion among the poor, but …