This paper investigates the determinants of credit demand in the presence of borrowing constraints for the Chilean economy using a recently collected detailed and innovative data set, the Households Financial Survey. The estimation procedure employed allows for the observed debt to be a function...

Households financial vulnerability determines households' default risk. Financial stability could be affected by households behaviour under stressing macroeconomic conditions. Households financial vulnerability depends on their indebtedness levels and on the fragility of their income sources to...

This paper addresses the relevance of contemporary uncertainty under incomplete markets in explaining wealth and consumption inequality when preferences are homogeneous. We explore the role of illiquid saving (saving that cannot be used to buffer contemporary shocks) generated by contemporary...

This paper summarizes the main results from the latest household panel survey (Social Protection Survey 2004/05 about the distribution of assets, debt and income across Chilean households. Several appealing conclusions can be drawn. First of all, it is worth stressing that a relatively small...