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The goal of this paper is to show that household-level financial distress (FD) varies greatly, meaning there is unequal …
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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...
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bankruptcies (countercyclical and very volatile). Using a growth model with household heterogeneity in earnings and assets with … household earnings growth accounts for these properties, albeit not for the large volatility of credit. We find that tilting … household consumption towards goods that can be purchased on credit and a slight countercyclicality in the terms of access to …
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In this paper we provide what we believe to be the first evidence on the nature of gross debt flows across consumers. We find that the aggregate dynamics in the consumer debt market are largely explained by the behavior of consumers with mortgage debt, and the behavior of such consumers is found...
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