could affect bank exposure to the household sector. Information on household income, expenses and liquid assets are used to …, bonds and stocks, household income and interest rates. Compared to the no-shock baseline, the LGD rises by a multiple of …This paper uses representative individual household data from Luxembourg to evaluate how severe economic conditions …

We study an Agent-based model of household-bank relationships where households borrow for the purpose of consumption …. Desired consumption is driven by households disposable income as well as a social norm of consumption. If households care … constraints can reduce macroeconomic volatility. Since by assumption high-income and low-income households react equally sensitive …