| 来源类型 | Discussion paper |
| 规范类型 | 论文 |
| 来源ID | DP14330 |
| DP14330 Tighter Credit and Consumer Bankruptcy Insurance | |
| António Antunes; Tiago Cavalcanti; Caterina Mendicino; Marcel Peruffo; Anne Villamil | |
| 发表日期 | 2020-01-20 |
| 出版年 | 2020 |
| 语种 | 英语 |
| 摘要 | How does bankruptcy protection affect household balance sheet adjustments and aggregate consumption when credit tightens? Using a tractable model of unsecured consumer credit we quantify the trade-off between the insurance and the creditworthiness effects of bankruptcy in response to tighter credit. We show that bankruptcy dampens the effect of tighter credit on aggregate consumption on impact. This is because it allows borrowers to sustain consumption against severe financial distress. However, by leading to consumers’ exclusion from the credit market for a certain period, bankruptcy also reduces their ability to smooth consumption over time, implying a slower recovery. The bankruptcy code establishes how costly it is to default, and, thus, plays a crucial role in determining consumers’ bankruptcy decisions and in shaping consumption dynamics. We quantify that the 2005 BAPCPA reform, by making filing for bankruptcy more costly, worsened the negative welfare effects of the subsequent credit tightening. |
| 主题 | Monetary Economics and Fluctuations |
| 关键词 | Deleveraging Chapter 7 Bapcpa |
| URL | https://cepr.org/publications/dp14330 |
| 来源智库 | Centre for Economic Policy Research (United Kingdom) |
| 资源类型 | 智库出版物 |
| 条目标识符 | http://119.78.100.153/handle/2XGU8XDN/543221 |
| 推荐引用方式 GB/T 7714 | António Antunes,Tiago Cavalcanti,Caterina Mendicino,et al. DP14330 Tighter Credit and Consumer Bankruptcy Insurance. 2020. |
| 条目包含的文件 | 条目无相关文件。 | |||||
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