The Persistence of Financial Distress

• 成果类型: Article
• 署名作者: Athreya, Kartik; Mustre-del-Rio, Jose; Sanchez, Juan M.
• 署名单位: Federal Reserve System - USA; Federal Reserve Bank - Richmond; Federal Reserve System - USA; Federal Reserve Bank - Kansas City; Federal Reserve System - USA; Federal Reserve Bank - St. Louis
• 刊物名称: REVIEW OF FINANCIAL STUDIES
• ISSN/ISSBN: 0893-9454
• DOI: 10.1093/rfs/hhz009
• 发表日期: 2019
• 页码: 3851
• 关键词: liquidity constraints; time preference; Discount rate; panel-data; consumption; insurance; WEALTH; credit; income; Heterogeneity

摘要

Using proprietary panel data, we show that many U.S. consumers experience financial distress (35% when distress is defined by having debt in severe delinquency, e.g.) at some point in their lives. However, most distress events are concentrated on a much smaller proportion of consumers in persistent trouble: fewer than 10% of borrowers account for half of all distress events. These facts can be largely accounted for in a straightforward extension of a workhorse model of unsecured debt with informal default that accommodates a simple form of heterogeneity in time preference.