Séminaire Microéconomie : Tous les mercredis
Heure : 12h15 – 13h30
Date : 03/05/2023
Salle : 3001

Naguib COSTANZA (Univ. de Bern) – “ Life after Default: Credit Hardship and its Effects” (joint with prof. Giacomo de Giorgi, University of Geneva)  ” 

CV : We analyze the impact of both soft (i.e. delinquency) and harsh (i.e. bankruptcy) credit default on individual trajectories. Using a proprietary dataset on about 1.5 million individuals for the years 2004 to 2020, we find that after default individuals are more likely to move to cheaper ZIP codes and commuting zones on impact as well as in the long run (i.e. 10 years from the event) after a harsh default. Importantly, we find that also a soft default has substantial and long-lasting negative effects on credit score, total credit limit, home-ownership status, and income. Such impacts are more modest than those of a harsh default, yet they are still substantial.

Organisateurs :

Julien COMBE (Pôle d’Economie du CREST)
​​Yves Le YAOUNQ (Pôle d’Economie du CREST)
​​Matias NUNEZ (Pôle d’Economie du CREST)

Commanditaires :
CREST