Bethune, Zachary; Rocheteau, Guillaume; Rupert, Peter - In: Review of Economic Dynamics 18 (2015) 1, pp. 77-100
This paper studies the relationship between the availability of unsecured credit to households and unemployment. We … endogenous and depends on firms' market power in the goods market and the availability of unsecured credit to consumers. As a … result of the complementarity between credit and labor markets, multiple steady states might exist. Across steady states …