A credit card bill is stamped in red with "Past Due."

Consumer Credit

Working Paper

Reducing Strategic Default in a Financial Crisis

WP 21-36/R – We document that increasing penalties for default reduces strategic default in financial crises by exploiting the 2009 changes to Canadian consumer insolvency regulations.

Featured Work

Consumer Credit

Working Paper

Health Insurance and Young Adult Financial Distress

WP 19-54/R – We study how health-insurance eligibility affects financial distress for young adults using the Affordable Care Act’s (ACA) dependent coverage mandate — the part of the ACA that requires private health-insurance plans to cover individuals up to their 26th birthday.

Consumer Credit

Article

Policies, Perceptions, and Paradoxes: Exploring the Role of Overoptimistic Borrowers in Consumer Credit Markets

Research in Focus — When overoptimistic borrowers are pooled together with more-rational borrowers, the interplay creates a moving target for policies that aim to preserve their collective welfare.

Meet the New Borrowers

Economic Insights — If a credit history is necessary to get credit, and credit is needed to build a credit history, where does this leave new borrowers? This article explains how lenders may look beyond repayment history to give new borrowers access to credit.