Unsecured credit markets are not insurance markets

Research output: Journal Publications and Reviews (RGC: 21, 22, 62)21_Publication in refereed journalpeer-review

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Author(s)

Detail(s)

Original languageEnglish
Pages (from-to)83-103
Journal / PublicationJournal of Monetary Economics
Volume56
Issue number1
Publication statusPublished - Jan 2009
Externally publishedYes

Abstract

We study the extent to which unsecured credit markets have altered the transmission of increased income risk to consumption variability over the past several decades. We find that unsecured credit markets pass through increased income risk to consumption, irrespective of bankruptcy policy and the information possessed by lenders. If risk sharing has indeed improved over this period, the reasons do not therefore lie in the unsecured credit market. © 2008 Elsevier B.V.

Research Area(s)

  • Asymmetric information, Bankruptcy, Default, Risk sharing

Citation Format(s)

Unsecured credit markets are not insurance markets. / Athreya, Kartik; Tam, Xuan S.; Young, Eric R.

In: Journal of Monetary Economics, Vol. 56, No. 1, 01.2009, p. 83-103.

Research output: Journal Publications and Reviews (RGC: 21, 22, 62)21_Publication in refereed journalpeer-review