Abstract
AbstractWe develop a novel dynamic model for household debt and household income change studying the interaction between financial fragility and financial literacy. We compare the results to the U.S. data under several parameterizations. Households react pro-cyclically to income shocks and are better able to represent aggregate data when financial literacy is low.
Funder
Università degli Studi di Urbino Carlo Bo
Publisher
Springer Science and Business Media LLC
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