Bethune, Zachary; Saldain, Joaquin; Young, Eric R. - 2024 - Last updated: October 8, 2024
We investigate the welfare consequences of consumer credit regulation in a dynamic, heterogeneous-agent model with endogenous lender market power. We incorporate a decentralized credit market with search and incomplete information frictions into an off-the-shelf Eaton-Gersovitz model of consumer...