A Quantitative Theory of Unsecured Consumer Credit with Risk of Default

@inproceedings{Chatterjee2002AQT,
  title={A Quantitative Theory of Unsecured Consumer Credit with Risk of Default},
  author={Satyajit Chatterjee and Philip Dean Corbae and Makoto Nakajima and Jos{\'e}-V{\'i}ctor R{\'i}os-Rull},
  year={2002}
}
We study, theoretically and quantitatively, the equilibrium of an unsecured consumer credit industry where credit-suppliers take deposits at a given interest rate and offer loans to households via a menu of credit levels and associated interest rates. The loan industry is competitive, with free entry and zero costs, and borrowers have a default option that resembles, in process and consequence, a bankruptcy filing under Chapter 7 of the U.S. Bankruptcy Code. We show existence of a competitive… CONTINUE READING

Citations

Publications citing this paper.
SHOWING 1-10 OF 239 CITATIONS

Essays on Consumer Default

VIEW 7 EXCERPTS
CITES BACKGROUND & METHODS
HIGHLY INFLUENCED

Bankruptcy, Incorporation, and the Nature of Entrepreneurial Risk

VIEW 6 EXCERPTS
CITES BACKGROUND
HIGHLY INFLUENCED

Mortgage defaults and recourse ∗

VIEW 5 EXCERPTS
CITES BACKGROUND & METHODS
HIGHLY INFLUENCED

A model of credit risk without commitment

VIEW 5 EXCERPTS
CITES BACKGROUND
HIGHLY INFLUENCED

Optimal Bankruptcy Code: A Fresh Start for Some

VIEW 5 EXCERPTS
CITES METHODS & BACKGROUND
HIGHLY INFLUENCED

Appendix: The Democratization of Credit and the Rise in Consumer Bankruptcies

Igor Livshits, James C. Mac Gee, Michèle Tertilt
  • 2015
VIEW 7 EXCERPTS
CITES BACKGROUND & METHODS
HIGHLY INFLUENCED

FILTER CITATIONS BY YEAR

2002
2019

CITATION STATISTICS

  • 42 Highly Influenced Citations

  • Averaged 7 Citations per year from 2017 through 2019

References

Publications referenced by this paper.
SHOWING 1-10 OF 22 REFERENCES

Supplement to ‘A Quantitative Theory of Unsecured Consumer Credit with Risk of Default’,

S. CHATTERJEE, D. CORBAE, M. NAKAJIMA, J.-V
  • RÍOS-RULL
  • 2007

CORBAE, AND J.-V

S. CHATTERJEE
  • RÍOS-RULL
  • 2004

Accounting for U.S. Earnings and Wealth Inequality,

A. CASTAÑEDA
  • J. DÍAZ-GIMÉNEZ, AND J. V. RÍOS-RULL
  • 2003

Price Competition in Loan Markets,

C. PARLOUR
  • RAJAN
  • 2001