Der Stand der finanziellen Bildung in Deutschland zeigt ein ambivalentes Bild: Obwohl das Land in internationalen Studien zum Finanzwissen regelmäßig Spitzenplätze belegt, bestehen nach wie vor deutliche Defizite - vor allem bei sozio-demografisch benachteiligten Gruppen. Die vorliegende...

Der Stand der finanziellen Bildung in Deutschland zeigt ein ambivalentes Bild: Obwohl das Land in internationalen Studien zum Finanzwissen regelmäßig Spitzenplätze belegt, bestehen nach wie vor deutliche Defizite - vor allem bei sozio-demografisch benachteiligten Gruppen. Die vorliegende...

This paper develops a debt-run model to study the effects of liquidity injections on debt markets in the presence of a renegotiation option. In the model, creditors decide when to withdraw their funding and equityholders can renegotiate the contract terms of debt. We show that when equityholders...

The public debt overhang spread across advanced countries, and the reform of the Stability and Growth Pact in the Euro Zone, have revived the polarization between those who think that debt is always good and those who think that debt is always bad. This paper presents a normative model of...

Schulden prägen das Leben vieler Millionen Menschen in den USA. Felix Krämer macht sich auf die Suche nach ihren Geschichten von 1865 bis in die Gegenwart. Dabei wird deutlich, dass insbesondere Schwarze Amerikaner:innen, aber auch Frauen, Arbeiter:innen oder Migrant:innen immer wieder...

This paper documents the different debt maturity choices of firms by allowing debt heterogeneity. We use a sample of US companies' capital structure and employ dynamic panel regressions and Instrumental Variable approach. When taking the maturity of each type of debt into account, the researcher...

Die europäischen Fiskalregeln - wichtiger Eckpfeiler der Wirtschafts- und Währungsunion - stehen in der Kritik und sollen reformiert werden. Einerseits wird argumentiert, dass sie zu restriktiv und angesichts eines steigenden öffentlichen Investitionsbedarfes nicht mehr zeitgemäß seien....

The goal of Long Term Debt is to play an important role in the financial landscape of businesses and governments. It serves as a financial tool that allows them to achieve their goals by providing access to large funds over an extended period

Die europäischen Fiskalregeln - wichtiger Eckpfeiler der Wirtschafts- und Währungsunion - stehen in der Kritik und sollen reformiert werden. Einerseits wird argumentiert, dass sie zu restriktiv und angesichts eines steigenden öffentlichen Investitionsbedarfes nicht mehr zeitgemäß seien....

This paper reviews the patterns of sectoral debts and growth and the mechanisms explaining the adverse effects of debt burdens on growth rates. The empirical analysis covers a sample of 55 emerging and frontier market economies. Future economic growth is more sensitive to rising household debt...

This paper examines whether biased income expectations due to overconfidence lead to higher levels of debt-taking. We show suggestive evidence for a link between overconfidence and borrowing behavior in a representative survey of German households (GSOEP-IS). This motivates a laboratory...

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...

We study how forcing financially distressed consumer debtors to repay a larger fraction of debt can lead them to misreport data fraudulently. Using a plausibly exogenous policy change that required debtors to increase repayment to creditors, we document that debtors manipulated data to avoid...

We review the state of the sovereign debt literature and point out that the canonical model of sovereign debt cannot be easily reconciled with several facts about sovereign debt pricing and servicing. We identify and classify twenty puzzles. Some are well known and documented, others are less so...

If the primary purpose of raising debt levels was to finance growth opportunities, then higher debt levels would signal greater post-payout returns on assets but contain no information about firm leverage. Using annual data in real terms for more than 5,400 public US non-financial firms from...

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...

Using data from the 2017 U.S. Survey of Household Economics and Decisionmaking (SHED), this study classifies student debt into three categories by beneficiary (self, spouse, and children) and examines the relationship between each category and financial well-being. The results show that the...

Governments regulate debt collectors to protect consumers from predatory practices. These restrictions may lower repayment, reducing the supply of mainstream credit and increasing demand for alternative credit. Using individual credit record data and a difference-in-differences design comparing...

Corporate law is dominated by an equity-only view of corporate governance that centers on management-shareholder dynamics. This Article expands the management-shareholder paradigm by developing a novel integrated theory of corporate governance that fully accounts for the firm’s debt. To that...

“The debt is not payable,” said Governor Alejandro Garcia Padilla of Puerto Rico to the New York Times on June 28th, 2015. In fact, by most independent analysis, the island’s $117 billion in total liabilities is not payable. Given this fact, the decision by elected officials not to provide...

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...

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...

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...

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...

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...

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...

We analyze debt issuance in the continuous time limit and when the issuer's asset is subject to downward jump risk. We find the debt capacity in equilibrium and an illiquidity barrier. When the asset-to-debt ratio is above the barrier the issuer is liquid, whereas below the barrier it can no...

This paper studies the direct impact of households' debt on consumption over the business cycle. We use household-level panel data for Spain, and focus on a interesting period of analysis, 2002-2017, characterized by large variations in leverage, consumption, and asset prices. We find that debt...

We study impacts of a cash transfer program with no means-test and no work restrictions: the US Department of Veteran Affairs (VA) Disability Compensation program. Our empirical strategy leverages quasi-random assignment of veterans claiming mental disorder disability to examiners who vary in...