We provide a model with endogenous portfolios of secured and unsecured household debt. Secured debt is collateralized … exemptions in bankruptcy procedures have very small effects on the equilibrium. -- Household debt portfolios ; Durables … ; Collateral ; Income risk ; Bankruptcy …

lender such as a government, central bank, or banking sector is willing to lend infinitely against collateral, explosive … asset bubbles can form which exactly offset a bubble in household liabilities. Surprisingly, evidence from a VAR using long … output comes from an unusual regime. -- Bubbles ; fiscal theory of the price level ; collateral constraints ; neutrality …

and price of unsecured debt. -- household debt portfolios ; housing ; collateral ; bankruptcy ; commitment ; income risk …We provide a model with endogenous portfolios of secured and unsecured household debt. Secured debt is collateralized … the U.S. We then establish the quantitative result that home equity does not serve as informal collateral for unsecured …