Consumption smoothing and debtor protections

Pattison, Nathaniel

doi:10.1016/j.jpubeco.2020.104306

Cited by 6 publications

(6 citation statements)

References 52 publications

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“…A well developed body of literature shows that closing the gender gap in financial inclusion could have positive effects in smoothing consumption (Pattison 2020); lowering financial risks and costs, women tend to be lower risk taker than men (Perrin and Weill 2022); providing security; and increasing saving and investment rates and facilitating new business opportunities. However, paying special attention and ensuring that gender equality can be realized is not easy.…”

Section: Introductionmentioning

confidence: 99%

Financial Inclusion and Women Empowerment: A Case Study of India

Kumari

2022

ebasr

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Despite general progress made in terms of Financial Inclusion worldwide, the gender gap has remained unaltered since 2011. The study aims to identify the impact of Financial Inclusion on women's empowerment. This research used descriptive qualitative methods. Content analysis approaches are used to analyze secondary data. Various reports published by the Reserve Bank of India (RBI) and other financial institutions have been used as relevant input. Besides, research articles from different reputed journals, websites, and magazines have been used. The study found that some strategies have been implemented to minimize the gender gap in access to financial services. The systems are Know Your Customer (KYC) norms, no-frill accounts; an extension of the financial services and became medium of empowering women; the introduction of a small loan to make the females capable and self-dependent. The paper provides implications about strategies to overcome the barriers women face to access and use financial services in the condition of social norms constraining women's capacity to access and meaningfully use financial services.

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Section: Introductionmentioning

confidence: 99%

Financial Inclusion and Women Empowerment: A Case Study of India

Kumari

2022

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“…The RKD estimates the moral hazard effect by isolating the direct effect of generosity. In contrast, IV and difference‐in‐difference approaches can identify the (causal) general equilibrium effect of generosity (e.g., Mahoney (2015), Auclert, Dobbie, and Goldsmith‐Pinkham (2019), Pattison (2020)). Both effects are of independent interest and jointly can inform models assessing the positive and normative effects of generous bankruptcy.…”

Section: The Effect Of Reduced Bankruptcy Generosity On Filingsmentioning

confidence: 99%

Moral Hazard versus Liquidity in Household Bankruptcy

Indarte

2023

The Journal of Finance

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This paper studies the role of moral hazard and liquidity in driving household bankruptcy. First, I estimate that increases in potential debt forgiveness have a positive, but small, effect on filing using a regression kink design. Second, exploiting quasi‐experimental variation in mortgage payment reductions, I estimate that filing is five times more responsive to cash‐on‐hand than relief generosity. Using a sufficient statistic, I show the estimates imply large consumption‐smoothing benefits of bankruptcy for the marginal filer. Finally, I conclude that 83% of the filing response to dischargeable debt comes from liquidity effects rather than a moral hazard response to financial incentives.

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“…Data on state-level homestead exemption levels come from Pattison (2018). The county unemployment rate comes from the Local Area Unemployment Statistics (LAUS) from the Bureau of Labor Statistics.…”

Section: Data Sourcesmentioning

confidence: 99%

“…The data for state-level UI come from different issues of the "Significant Provisions of State UI Laws" of the US Department of Labor. Data on state-level homestead exemption levels come fromPattison (2018). The county unemployment rate comes from the Local Area Unemployment Statistics (LAUS) from the Bureau of Labor Statistics.…”

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confidence: 99%

The Effect of Minimum Wages on Consumer Bankruptcy

Young

2022

Working Paper (Federal Reserve Bank of Cleveland)

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We use cross-state differences in minimum wage (MW) levels and county-level consumer bankruptcy rates from 1991-2017 to estimate the effect of changes in minimum wages on consumer bankruptcy by exploiting policy discontinuities at state borders. We find that Chapter 7 bankruptcy rates are significantly lower in counties belonging to states with higher MW compared to neighboring counties in the lower MW state: a 10 percent increase in MW decreases the bankruptcy rate by around 4 percent. Before the 2005 bankruptcy reform, this effect was almost twice as large as for the entire sample. Theoretically, we cannot sign the effect of MW on bankruptcy and credit utilization; we use a stylized consumption/saving model with default to illustrate the dependence on particular parameters and to provide intuition on how to interpret our results.

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Consumption smoothing and debtor protections

Cited by 6 publications

References 52 publications

Financial Inclusion and Women Empowerment: A Case Study of India

Financial Inclusion and Women Empowerment: A Case Study of India

Moral Hazard versus Liquidity in Household Bankruptcy

The Effect of Minimum Wages on Consumer Bankruptcy

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