Working Papers

Working papers - academic research on economy aimed at enhancing the knowledge about economic processes, problems and trends through development of new theories and concepts. The results of these studies are published in leading international journals, as for example SAGE Knowledge, Journal of Economic Development, Research Policy (Science Direct)Baltic Journal of Economics, Eastern Economic Journal and etc.

|Michèle Tertilt|James MacGee| 28.02.2014
The Democratization of Credit and the Rise in Consumer Bankruptcies
Financial innovations are a common explanation for the rise in credit card debt and bankruptcies. To evaluate this story, the authors develop a simple model that incorporates two key frictions: asymmetric information about borrowers’ risk of default and a fixed cost of developing each contract lenders offer.
|Natalia Kovrijnykh| 11.05.2013
Screening as a Unified Theory of Delinquency, Renegotiation, and Bankruptcy
The authors propose a parsimonious model with adverse selection where delinquency, renegotiation, and bankruptcy all occur in equilibrium as a result of a simple screening mechanism.