Life after Default: Credit Hardship and its Effects

Giacomo De Giorgi and Costanza Naguib

Diskussionsschriften from Universitaet Bern, Departement Volkswirtschaft

Abstract: We analyze the impact of credit default on individual trajectories. Using a proprietary dataset for the years 2004-2020, we find that after default individuals relocate to cheaper areas. Importantly, default has long-lasting negative effects on income, credit score, total credit limit, and home-ownership status.

Keywords: mobility; bankruptcy; default; credit; income (search for similar items in EconPapers)
JEL-codes: D12 G51 J61 (search for similar items in EconPapers)
Date: 2022-08
New Economics Papers: this item is included in nep-ban, nep-lab, nep-rmg and nep-ure
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Persistent link: https://EconPapers.repec.org/RePEc:ube:dpvwib:dp2206

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