Quantitative Economics
Journal Of The Econometric Society
Edited by: Stéphane Bonhomme • Print ISSN: 1759-7323 • Online ISSN: 1759-7331
Quantitative Economics: Nov, 2015, Volume 6, Issue 3
Evaluating default policy: The business cycle matters
Grey Gordon
More debt forgiveness directly benefits households but indirectly makes credit more expensive. How does aggregate risk affect this trade‐off? In a calibrated general equilibrium life‐cycle model, aggregate risk reduces the welfare benefit of making default very costly when the costs are borne by all households at all times. The result does not necessarily extend to state‐contingent policies. The Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 in particular generates a small welfare loss with or without aggregate risk.
Bankruptcy law consumer finance business cycles C68 D58 E21 E22 E32 E61 E65 K35
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Supplemental Material
Supplement to "Evaluating default policy: The business cycle matters"
Supplement to "Evaluating default policy: The business cycle matters"
Supplement to "Evaluating default policy: The business cycle matters"
Supplement to "Evaluating default policy: The business cycle matters"
Journal News
March 5, 2024
Announcing the New Journal Editors
The terms of the Editors of the Econometric Society's three journals end June 30, 2025. We are pleased to announce the incoming Editors and to thank the outgoing Editors for their excellent and continuing service.
Econometrica: Since 2019, Guido Imbens has served as the 14th Editor of Econometrica. On July 1, 2025, Marina Halac will become the Editor.
Quantitative Economics: Stéphane Bonhomme has been the Editor of Quantitative Economics since 2021. His successor will be Bernard Salanié.
Theoretical Economics: The Editor of Theoretical Economics since 2021 has been Simon Board. Taking over for him in July 2025 will be Federico Echenique.
Guido, Stéphane, and Simon have been outstanding Editors. We are grateful to them for the work they have done and will continue to do, and we look forward to further congratulating them next year. We believe Marina, Bernard, and Federico will be outstanding successors and we thank them in advance for their service.
Finally, we are grateful to Larry Samuelson for chairing all three search committees, and we thank the search committee members for their hard and fruitful work:
Econometrica: Christian Dustmann, Lars Hansen, Alessandro Lizzeri, George Mailath, Ariel Pakes, Helene Rey, and Elie Tamer.
QE: Kate Ho, Michael Keane, Felix Kubler, Whitney Newey, and Frank Schorfheide.
TE: Jeff Ely, Johannes Horner, Gilat Levy, Meg Meyer, and Ran Spiegler.
