The role of consumer leverage in generating financial crises
Consumer leverage can generate financial crises characterized by increased bankruptcy, tightened credit access and reduced demand for goods. This paper embeds financial frictions in the mortgage contracts of homeowners within a two-sector economy to show that even at moderate initial levels, househ...
Egile nagusia: | Dimova, D |
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Formatua: | Working paper |
Argitaratua: |
University of Oxford
2012
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