The DOI matches its Crossref record; 1 of the 1 references it cites were found in a registry or an index.
Household Debt Overhang and Unemployment
Open accessAbstract
We use a labor‐search model to explain why the worst employment slumps often follow expansions of household debt. We find that households protected by limited liability suffer from a household‐debt‐overhang problem that leads them to require high wages to work. Firms respond by posting high wages but few vacancies. This vacancy posting effect implies that high household debt leads to high unemployment. Even though households borrow from banks via bilaterally optimal contracts, the equilibrium level of household debt is inefficiently high due to a household‐debt externality . We analyze the role that a financial regulator can play in mitigating this externality.
Overview
Integrity signals
Registry
Cites
Statistics
Verification
Claims the paper makes
Citations
Cites
Household Leverage and the Recession of 2007–09
Mian, A., & Sufi, A. (2010) · IMF Economic Review · doi:10.1057/imfer.2010.2 · Cited by 404
Research works printed but not linked: 30
- 10.1086/250084 · DOI
- 10.1016/j.red.2014.08.002 · DOI
- 10.4159/9780674020900 · DOI
- 10.2307/2527003 · DOI · Paper page
- 10.1111/j.1540-6261.1987.tb04363.x · DOI
- Daly Mary C., 2015, Why is wage growth so slow, Federal Reserve Bank of San Francisco Economic Letter, 1
- 10.1093/qje/qjs023 · DOI
- Gerardi Kristopher Kyle F.Herkenhoff Lee E.Ohanian andPaul S.Willen 2013 Unemployment negative equity and strategic default Working Paper 2013‐04 Federal Reserve Bank of Atlanta. Available athttps://www.frbatlanta.org/research/publications/wp/2013/04.aspx. · DOI
- 10.1093/qje/qjx005 · DOI
- Hagedorn Marcus IouriiManovskii andKurtMitman 2015 The impact of unemployment benefit extensions on employment: The 2014 employment miracle? NBER Working Paper 20884. · DOI
- 10.1016/0304-405X(89)90048-2 · DOI
- 10.2307/2297382 · DOI
- 10.1016/0022-0531(90)90066-S · DOI
- 10.2202/1935-1682.2512 · DOI
- 10.1257/aer.20131408 · DOI
- 10.1111/jofi.12482 · DOI
- 10.1257/aer.101.5.2132 · DOI
- 10.7208/chicago/9780226277509.001.0001 · DOI
- 10.3982/ECTA10451 · DOI
- 10.1111/jofi.12310 · DOI
- 10.2307/2534258 · DOI
- 10.1017/S0022050700087167 · DOI
- Mulligan Casey B. 2009 Means‐tested mortgage modification: Homes saved or income destroyed? NBER Working Paper 15281. · DOI
- Mulligan Casey B. 2010 Foreclosures enforcement and collections under the federal mortgage modification guidelines NBER Working Paper 15777. · DOI
- 10.1093/rfs/7.1.1 · DOI
- 10.3982/ECTA7562 · DOI
- 10.1016/j.jfi.2016.10.002 · DOI
- 10.1093/oep/51.3.399 · DOI
- 10.1257/002205105775362014 · DOI
- Stavins Joanna, 2000, Credit card borrowing, delinquency, and personal bankruptcy, New England Economic Review, 15
Cited by
Sorted by citations
The Distributional Effects of Student Loan Forgiveness
Catherine, S., & Yannelis, C. (2023) · Journal of Financial Economics · doi:10.1016/j.jfineco.2022.10.003 · Cited by 48
Metadata
- Authors
- DONALDSON, J. R., PIACENTINO, G., & THAKOR, A.
- Affiliations
- Center for Economic and Policy Research (US)
- ORCID
- THAKOR, ANJAN
- Venue
- The Journal of Finance
- Publisher
- Wiley
- Published
- 2019-03-18
- Volume
- 74
- Issue
- 3
- Pages
- 1473-1502
- ISSN
- 0022-1082 (ISSN-L)
- 1540-6261
- OpenAlex
- W2912759916
- Cited by
- 74
- References
- 1
- Citations by year
- 2026: 6 · 2025: 9 · 2024: 17 · 2023: 12 · 2022: 5 · 2021: 9 · 2020: 10 · 2019: 3
- FWCI
- 8.43
- Type
- journal article
- Language
- en
- Open access
- green
- doi.org
- Locations
- The Journal of Finance (publishedVersion)
- SSRN Electronic Journal (publishedVersion)
- Topics
- Social Sciences › Economics, Econometrics and Finance › Economics and Econometrics › Economic theories and models
- Social Sciences › Economics, Econometrics and Finance › General Economics, Econometrics and Finance › Economic Theory and Policy
- Social Sciences › Economics, Econometrics and Finance › Finance › Banking stability, regulation, efficiency
- Keywords
- unemployment, limited liability, labor search model, wage determination, job vacancies, financial regulation, household borrowing
About these checks
Registry, retraction, Cites and statistics results are computed, not judged, with one exception: a printed reference that no index lists is read once by a model before it counts as a citation error. Claims are extracted by a model and kept only when their quote appears verbatim in the text; each cited source is then checked, with a model’s help, for whether it says what the claim relies on. Those verdicts can be wrong — read the claim’s quote and the cited source before relying on one.
Statistics and arithmetic are recomputed, not judged.
Confidence bands are shown only for fields calibrated on our annotated test set. None is calibrated yet, so no band is shown.
What counts as a claim ›How we measure confidence ›How we check this ›
Are you an author, or do you see a problem with this page? Request a review
