A comparison of models and results from selected papers on personal bankruptcy establishes how particular modeling assumptions matter for the implications of bankruptcy. For example, it can be argued that only under income processes that allow for large shocks to net worth can bankruptcy play a...

Intro -- Contents -- Acknowledgments -- Introduction -- 1 The Modern Macroeconomic Approach and the Arrow-Debreu-McKenzie Model -- 2 Prices, Efficiency, and Macroeconomics -- 3 Macroeconomists, Efficiency, and Inequality -- 4 Macroeconomic Shortcuts -- 5 Benchmark Macroeconomic Models and Policy...

The 1990's witnessed a historically unprecedented number of personal bankruptcy filings. In response, congressional debate over bankruptcy law has recently led to several proposals aimed at making it more difficult to exempt wealth in bankruptcy. In this paper, I evaluate uniform exemption...

This paper derives the general equilibrium effects of rational inattention (or RI; Sims 2003, 2010) in a model of incomplete income insurance (Huggett 1993, Wang 2003). We show that, under the assumption of CARA utility with Gaussian shocks, the permanent income hypothesis (PIH) arises in steady...