Search Results - subject:"Borrowing constraints"

Untangling the Relationship Between Income and Subjective Well-Being: The Role of Perceived Income Adequacy and Borrowing Constraints

Pereira, Maria; Coelho, Filipe - In: Journal of Happiness Studies 14 (2013) 3, pp. 985-1005

income as well as of their borrowing constraints. The results indicate that both variables determine subjective well … eases borrowing constraints. Such mediating effects thus contribute to explain how income affects subjective well-being. We … also inspect differences in life satisfaction responsiveness to perceived income adequacy and borrowing constraints in …

Persistent link: https://www.econbiz.de/10010848339

Leveraged Borrowing and Boom-Bust Cycles

Pintus, Patrick; Wen, Yi - In: Review of Economic Dynamics 16 (2013) 4, pp. 617-633

Investment booms and asset "bubbles" are often the consequence of heavily leveraged borrowing and speculations of persistent growth in asset demand. We show theoretically that dynamic interactions between elastic credit supply (due to leveraged borrowing) and persistent credit demand (due to...

Persistent link: https://www.econbiz.de/10010856604

News and sovereign default risk in small open economies

Durdu, C. Bora; Nunes, Ricardo; Sapriza, Horacio - In: Journal of International Economics 91 (2013) 1, pp. 1-17

This paper builds a unified model of sovereign debt, default risk, and news shocks. News shocks improve the quantitative performance of the sovereign default model in a number of empirically-relevant dimensions. First, with news shocks, not all defaults occur during downturns. Second, the news...

Persistent link: https://www.econbiz.de/10010906912

Borrowing Constraints, College Enrollment, and Delayed Entry.

Johnson, Matthew T. - Mathematica Policy Research - 2013

This article specifies a dynamic model of education, borrowing, and work decisions of high school graduates to ascertain how increasing the amount students are permitted to borrow through government-sponsored loan programs would affect educational attainment.

Persistent link: https://www.econbiz.de/10010923908

Informality, financial development and macroeconomic volatility

Mitra, Shalini - In: Economics Letters 120 (2013) 3, pp. 454-457

In a dynamic stochastic general equilibrium model with heterogeneous agents, this note shows that beyond a certain low level, financial development is associated with higher relative consumption–income volatility in the presence of a working capital constraint. Informality on the other hand...

Persistent link: https://www.econbiz.de/10010681775