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.
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.
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.
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.