Household Debt Problems: Toward a Micro-Macro Linkage
Author(s)
Cameron, Samuel
Abstract
In economic theory the borrower is modeled as an individual who chooses a lifetime pattern of consumption, taking on debt to adjust the flow of goods over time. In practice, modern borrowers increasingly engage in problem debt behavior, diminishing their potential lifetime consumption opportunities. This selection argues that the individualistic orientation of the economic model fails to account for macro influences on debt behavior caused by economic growth fueled by high-status consumption.
