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        Inequality  Leverage and Crises:  The Case of Endogenous Default
        Inequality  Leverage and Crises:  The Case of Endogenous Default
        Inequality  Leverage and Crises:  The Case of Endogenous Default
        Inequality  Leverage and Crises:  The Case of Endogenous Default
        Inequality  Leverage and Crises:  The Case of Endogenous Default
        Inequality  Leverage and Crises:  The Case of Endogenous Default
        Inequality  Leverage and Crises:  The Case of Endogenous Default
        Inequality  Leverage and Crises:  The Case of Endogenous Default
        Inequality  Leverage and Crises:  The Case of Endogenous Default
        Inequality  Leverage and Crises:  The Case of Endogenous Default
        Inequality  Leverage and Crises:  The Case of Endogenous Default
        Inequality  Leverage and Crises:  The Case of Endogenous Default
        Inequality  Leverage and Crises:  The Case of Endogenous Default
        Inequality  Leverage and Crises:  The Case of Endogenous Default
        Inequality  Leverage and Crises:  The Case of Endogenous Default
        Inequality  Leverage and Crises:  The Case of Endogenous Default
        Inequality  Leverage and Crises:  The Case of Endogenous Default
        Inequality  Leverage and Crises:  The Case of Endogenous Default
        Inequality  Leverage and Crises:  The Case of Endogenous Default
        Inequality  Leverage and Crises:  The Case of Endogenous Default
        Inequality  Leverage and Crises:  The Case of Endogenous Default
        Inequality  Leverage and Crises:  The Case of Endogenous Default
        Inequality  Leverage and Crises:  The Case of Endogenous Default
        Inequality  Leverage and Crises:  The Case of Endogenous Default
        Inequality  Leverage and Crises:  The Case of Endogenous Default
        Inequality  Leverage and Crises:  The Case of Endogenous Default
        Inequality  Leverage and Crises:  The Case of Endogenous Default
        Inequality  Leverage and Crises:  The Case of Endogenous Default
        Inequality  Leverage and Crises:  The Case of Endogenous Default
        Inequality  Leverage and Crises:  The Case of Endogenous Default
        Inequality  Leverage and Crises:  The Case of Endogenous Default
        Inequality  Leverage and Crises:  The Case of Endogenous Default
        Inequality  Leverage and Crises:  The Case of Endogenous Default
        Inequality  Leverage and Crises:  The Case of Endogenous Default
        Inequality  Leverage and Crises:  The Case of Endogenous Default
        Inequality  Leverage and Crises:  The Case of Endogenous Default
        Inequality  Leverage and Crises:  The Case of Endogenous Default
        Inequality  Leverage and Crises:  The Case of Endogenous Default
        Inequality  Leverage and Crises:  The Case of Endogenous Default
        Inequality  Leverage and Crises:  The Case of Endogenous Default
        Inequality  Leverage and Crises:  The Case of Endogenous Default
        Inequality  Leverage and Crises:  The Case of Endogenous Default
        Inequality  Leverage and Crises:  The Case of Endogenous Default
        Inequality  Leverage and Crises:  The Case of Endogenous Default
        Inequality  Leverage and Crises:  The Case of Endogenous Default
        Inequality  Leverage and Crises:  The Case of Endogenous Default
        Inequality  Leverage and Crises:  The Case of Endogenous Default
        Inequality  Leverage and Crises:  The Case of Endogenous Default

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        Inequality Leverage and Crises: The Case of Endogenous Default

        ABSTRACT

        The paper studies how high household leverage and crises can arise as a result of changes in the income distribution. Empirically, the periods 1920-1929 and 1983-2008 both exhibited a large increase in the income share of high-income households, a large increase in debt leverage of the remainder, and an eventual financial and real crisis. The paper presents a theoretical model where higher leverage and crises arise endogenously in response to a growing income share of high-income households. The model matches the profiles of the income distribution, the debt-to-income ratio and crisis risk for the three decades prior to the Great Recession.

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        • TypeReport
        • PriceFree
        • FormatPDF
        • Size577 KB
        • LanguageEnglish
        • Stacks0
        • Postedalmost 4 years ago
        • Authored-
        • Added byHashdoc Content Review
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