Philadelphia paper explores drivers of bankruptcy decisions
Working paper considers how much the structure of a household’s balance sheet and income statement matters
Both balance sheet and income statement characteristics matter for household bankruptcy choices following an exogenous income shock, a working paper published by the Federal Reserve Bank of Philadelphia finds.
Vyacheslav Mikhed and Barry Scholnick note some explanations of household default and bankruptcy relate to the structure of their balance sheets, while others focus on their income statements.
In their paper The Causes of Household Bankruptcy: The Interaction of Income Shocks and Balance
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