The Persistence of Financial Distress
Kartik Athreya,
Jose Mustre-del-Rio and
Juan Sanchez
No 308, 2018 Meeting Papers from Society for Economic Dynamics
Abstract:
Using recently available proprietary panel data, we show that while many (35%) US consumers experience financial distress at some point in the life cycle, most of the events of financial distress are primarily concentrated in a much smaller proportion of consumers in persistent trouble. Roughly 10% of consumers are distressed for more than a quarter of the life cycle, and less 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 defaultable debt that accommodates a simple form of heterogeneity in time preference but not otherwise.
Date: 2018
New Economics Papers: this item is included in nep-dge
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)
Downloads: (external link)
https://red-files-public.s3.amazonaws.com/meetpapers/2018/paper_308.pdf (application/pdf)
Related works:
Journal Article: The Persistence of Financial Distress (2019) 
Journal Article: The Persistence of Financial Distress (2019) 
Working Paper: The Persistence of Financial Distress (2017) 
Working Paper: The Persistence of Financial Distress (2017) 
Working Paper: The Persistence of Financial Distress (2017) 
Working Paper: The Persistence of Financial Distress (2016) 
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
HTML/Text
Persistent link: https://EconPapers.repec.org/RePEc:red:sed018:308
Access Statistics for this paper
More papers in 2018 Meeting Papers from Society for Economic Dynamics Society for Economic Dynamics Marina Azzimonti Department of Economics Stonybrook University 10 Nicolls Road Stonybrook NY 11790 USA. Contact information at EDIRC.
Bibliographic data for series maintained by Christian Zimmermann ().