Assuming a risk-neutral bank and assuming household utility to be exponential, we show how under information symmetry … the covariance of income and loan repayments may explain higher household borrowings than in the case without default … that in a situation in which a household without default option would neither borrow nor save, the existence of a default …

country’s gender equality regime. Our empirical analysis involves household data on financial asset holdings as well as on …

country's gender equality regime. Our empirical analysis involves household data on financial asset holdings as well as on …

A unique Finnish household-level data from 1994 to 2009 allow us to measure how households' financial expectations are … related to the subsequent outcomes. We use the difference between the two to measure forecast errors and household optimism …

This paper considers the causes of the rise in US household debt since the early 1970s using a calibrated partial … expectations, combined with demographic changes, are considered to explain the rise in US household debt. The calibrated model is … found to be able to explain many features of US household borrowing, both in aggregate and cross-section. In particular, it …