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Does Greater Inequality Lead to More Household Borrowing? New Evidence from Household Data

Coibion, Olivier; Gorodnichenko, Yuriy; Kudlyak, Marianna; … - 2014

One suggested hypothesis for the dramatic rise in household borrowing that preceded the financial crisis is that low-income households increased their demand for credit to finance higher consumption expenditures in order to keep up with higherincome households. Using household level data on debt...

Persistent link: https://www.econbiz.de/10010333254

Who Is the Enemy?

Epstein, Gil S.; Gang, Ira N. - 2004

We examine who benefits when there is a strong leader in place, and those who benefit when a situation lacks a proper leader. There are fractious terrorist groups who seek to serve the same people in common cause against a common enemy. The groups compete for rents obtained from the public by...

Persistent link: https://www.econbiz.de/10010261991

The efficacy and efforts of interest groups in post elections policy formation

Epstein, Gil S.; Mealem, Yosef; Nitsan, Shemuel - 2012

given party ideological predispositions and power distribution determine the expected policy outcome. Our analysis applies … weighted by power. Our second result clarifies how the success of an interest group hinges on the dominance of its ideology in … effect of ideological predispositions and power on the efforts of the interest groups. …

Persistent link: https://www.econbiz.de/10010291379

Who Bears the Welfare Costs of Monopoly? The Case of the Credit Card Industry

Herkenhoff, Kyle; Raveendranathan, Gajendran - 2019

How are the welfare costs from monopoly distributed across U.S. households? We answer this question for the U.S. credit card industry, which is highly concentrated, charges interest rates that are 3.4 to 8.8 percentage points above perfectly competitive pricing, and has repeatedly lost antitrust...

Persistent link: https://www.econbiz.de/10012180029

Financial dependence, formal credit, and informal jobs: new evidence from Brazilian household data

Catão, Luis A. V.; Pagés, Carmen; Rosales, Maria Fernanda - 2009

This paper examines a much overlooked link between credit markets and formalization: since access to bank credit typically requires compliance with tax and employment legislation, firms are more likely to incur such formalization costs once bank credit is more widely available at lower cost; if...

Persistent link: https://www.econbiz.de/10010269636

Repayment versus investment conditions and exclusivity in lending contracts

Bougheas, Spiros P.; Dasgupta, Indraneel; Morrissey, Oliver - 2009

Lenders condition future loans on some index of past performance. Typically, banks condition future loans on repayments of earlier obligations whilst international organizations (official lenders) condition future loans on the implementation of some policy action ('investment'). We build an...

Persistent link: https://www.econbiz.de/10010271893

Consumption Smoothing and the Structure of Labor and Credit Markets

Bertola, Giuseppe; Koeniger, Winfried - 2004

Smoother labor incomes alleviate credit constraints by reducing workers' desire to borrow, and prospects of upward income mobility have smaller beneficial effects for currently poor workers when borrowing constraints are binding. These simple theoretical insights are consistent with the...

Persistent link: https://www.econbiz.de/10010261817

Funding self-employment: The role of consumer credit

Kneiding, Christoph; Kritikos, Alexander S. - 2011

This paper investigates whether self-employed households use consumer loans - in particular instalment loans and overdrafts - to finance business activities. Controlling for financial and non-financial household variables we show that self-employed households particularly use personal overdrafts...

Persistent link: https://www.econbiz.de/10010282216

A new model of wage determination and wage inequality

Jasso, Guillermina - 2008

power depend on the configuration of agreements and disagreements; (2) Independence of mind reduces wage inequality, and …

Persistent link: https://www.econbiz.de/10010269355

Dealer Pricing of Consumer Credit

Bertola, Giuseppe; Hochguertel, Stefan; Koeniger, Winfried - 2002

Interest rates on consumer lending are lower when funds are tied to purchase of a durable good than when they are made available on an unconditional basis. Further, dealers often choose to bear the financial cost of their customers? credit purchases. This paper interprets this phenomenon in...

Persistent link: https://www.econbiz.de/10010262807