Using transaction data from a US consumer payments diary, we revisit the credit card debt puzzle-a scenario in which consumers revolve credit card debt while also keeping liquid assets as bank account deposits. This scenario is very common: 42 percent of consumers in our sample were...

Numerous studies have examined the effect on credit spreads of renegotiation. These studies have generally focussed on the impact on spread levels in general, and not on how renegotiation influences the relative pricing of senior versus junior debt claims. In this paper, we show that the scope...

In 1825, France conditioned its grant of recognition to the new nation of Haiti on the payment of 150 million francs plus trade benefits. The payments were, at least in part, compensation for the losses that French plantation owners suffered, a key part of which was the loss of enslaved...

UK debt restructuring is undergoing a period of immense change. Two developments in particular have contributed to this transformation. The first is legislative: the Corporate Insolvency and Governance Act 2020 (CIGA) introduced a number of powerful new tools into the armoury of financially...

Recent theories of crisis put lending booms at the root of financial collapses. Yet lending booms may be a natural consequence of economic development and fluctuations. So are lending booms dangerous? In this paper, we investigate empirically this question using a broad sample of lending boom...

Purpose: In recent decades, research on consumer debt and well-being is emerging. However, research on the potential effect of debt portfolios on family financial well-being is limited. The purpose of this study is to fill this research gap by examining the potential effect of debt portfolios on...

The world in which we live is continuously developing and changing. Nations all across the world are striving for superiority and expanding their influence. However, not every nation's situation is favorable; in order to excel further, states require support and collaboration from their...

Using transaction data from a US consumer payments diary, we revisit the credit card debt puzzle-a scenario in which consumers revolve credit card debt while also keeping liquid assets as bank account deposits. This scenario is very common: 42 percent of consumers in our sample were...

Little is known about the effect of seeking debt advice on borrowers' well-being. To estimate this effect, we designed a randomised encouragement intervention for a new sample of over-indebted people in Britain who had not sought debt advice in the previous six months. Being encouraged to seek...

We examine the impact of overdue debts in small villages in one of Hungary's most disadvantaged regions. We find that a significant number of debtors with overdue debts permanently escape from debt collectors. Accordingly, in our sample, overdue debts reduce the likelihood of declared work by 14...

Over 60% of US households with credit cards are currently borrowing -- i.e., paying interest -- on those cards. We attempt to reconcile the high rate of credit card borrowing with observed levels of life cycle wealth accumulation. We simulate a lifecycle model with five properties that create...

Analyzing public debt in low-income developing countries (LIDCs) is like solving a puzzle with many missing pieces. Forty percent of LIDCs have not published any sovereign debt data in the last two years. Public debt data disclosed in different publications show discrepancies of up to 30 percent...

We use information from the last wave of the Spanish Survey of Households Finance to study the influence of debt on the self-reported Marginal Propensity to Consume (MPC). The MPC is 43 per cent on average, but indebted households have a smaller MPC than non-indebted households. This negative...

Recent years have seen the development of a large literature on balance sheet factors in emerging-market financial crises. In this paper we discuss three concepts widely used in this literature. Two of them original sin' and debt intolerance' seek to explain the same phenomenon, namely, the...

We analyze the role of debt in persuading an entrepreneur to pay out cash flows, rather than to divert them. In the first part of the paper we study the optimal debt contract -- specifically, the trade-off between the size of the loan and the repayment -- under the assumption that some debt...

This paper explains why domestic debt composition in emerging economies is risky. It carries out an analysis of the determinants of 'domestic' original sin, which refers to the inability of emerging economies to borrow domestically in local currency, at long maturities and fixed interest rates....

What difference does it make, and for whom, whether the nonperforming debts of emerging market borrowers are restructured? This paper begins by positing a set of counterfactual conditions under which restructuring would not matter, and then shows how several ways in which the actual world of...

A model of financial crises in emerging markets based on problems of agency in financial intermediation is developed. This model generates dynamic relationships between foreign capital inflows, domestic investment and domestic bank debt in an endogenous growth model. As a consequence of loan...

Die Annahme, es gäbe heutzutage keine Sklaverei mehr, geht an der Realität vorbei. Tatsächlich sind heute - in absoluten Zahlen - mehr Menschen versklavt als jemals zuvor in der Geschichte. Die Internationale Arbeitsorganisation der Vereinten Nationen spricht von "moderner Sklaverei" und...

Purpose: Over the past a few decades, there has been an increasing body of research on debt and wellbeing. However, research on the potential effect of various debt portfolios on family financial wellbeing is limited. The purpose of this study is to fill this research gap by examining the...

"This volume reconsiders the economic history of the ancient and late ancient Mediterranean and Near East from the perspective of David Graeber's anthropological theory. It pursues two purposes. On the one hand, it tests the accuracy of the grand narrative put forward in his 2011 monograph Debt:...

We model the expansion decision of a levered firm. Straight debt distorts both timing and scaling: the firm invests less and later than its all-equity financed counterpart. The inclusion of performance sensitivity in the debt contract mitigates such distortions. Moreover, performance sensitivity...

Evidence shows that managers' debt-like compensation (i.e., inside debt) aligns their incentives with lenders', reducing the agency cost of debt. We examine how changes in the contracting environment affect the use of inside debt in debt contracting. We find evidence of reduced reliance on...

This study aims to examine the influence of behavioral and demographic factors on indebtedness by constructing a model using specific determinants. The exploratory method is used through the partial least square (SmartPLS) technique, by surveying 320 respondents in Kuala Lumpur, Malaysia. A...

The purpose of this study is to analyze the structure of debts in different aged group, as well as executive pension arrangements. For whom aged under 50 categorizes as the junior executive group, while for whom aged above 50 categorizes as the senior executive group. The dataset is selected...

The promise of financial technology (“fintech”) and artificial intelligence (“AI”) in broadening access to financial products and services continues to capture the imagination of policymakers, Wall Street, and the public. This has been particularly true in the realm of fintech credit...

The United States has recently experienced a sharp increase in student debt and the cost of rent. In this paper, I study the potential link between these two concurrent trends at the metropolitan level using consumer credit data from Experian and characteristics of rental markets from the...

We investigate the transmission of central bank liquidity to bank deposits and loan spreads in Europe over the period from January 2006 to June 2010. We find evidence consistent with an impaired transmission channel due to bank risk. Central bank liquidity does not translate into lower loan...

Emerging market and developing economies have experienced recurrent episodes of rapid debt accumulation over the past fifty years. This paper examines the consequences of debt accumulation using a three-pronged approach: an event study of debt accumulation episodes in 100 emerging market and...

Emerging market and developing economies have experienced recurrent episodes of rapid debt accumulation over the past fifty years. This paper examines the consequences of debt accumulation using a three-pronged approach: an event study of debt accumulation episodes in 100 emerging market and...

This study empirically analyzes the effect of debt origin on investment efficiency. According to previous studies that report that the quality of financial reporting may vary depending on the origin of the debt, the empirical analysis predicted that the effects of the origin of the debt on...

In the wake of the Global Financial Crisis, a significant research effort has been made to better understand the links between household debt levels, financial stability risks, and the ongoing implications of the ‘debt overhang’ for economic growth. However, accurately measuring the...

In this paper we empirically explore the relationship between debt and output in a panel of 72 countries over the period 1970-2014 using a vector autoregression (VAR). We document two puzzling empirical findings that contrast with what is predicted by a standard small open economy model by...