22.03.2022: Michèle Tertilt – Consumer credit with over-optimistic borrowers
Presenter: Michèle Tertilt Affiliation: University of Mannheim, Department of Economics. Paper: Consumer Credit with Over-Optimistic Borrowers. Date: March 22, 2022 Time: 13:00 GMT Abstract: Do cognitive biases call for regulation to limit the use of credit? We incorporate over-optimistic and rational borrowers into an incomplete markets model with consumer bankruptcy. Over-optimists face worse income risk … Read more