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This article discusses some key results in the theoretical literature on credit market imperfections, household wealth … dynasty model, explains how a household may be caught in a poverty trap because of credit market imperfections but says little …
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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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between these two effects of the lending process. This Article develops a framework, based on the household balance sheet …
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household debt and wealth accumulation for poor households but a significantly positive relationship for wealthy households …
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