Empirical Analyses of Markets for Consumer Financial Products and their Effects
This proposal presents three broad projects on information frictions in households' credit markets and on the
consequences of these frictions for durable good markets. Specifically, an influential theoretical literature in
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Descripción del proyecto
This proposal presents three broad projects on information frictions in households' credit markets and on the
consequences of these frictions for durable good markets. Specifically, an influential theoretical literature in
information economics has shown that borrowing constraints can arise in equilibrium when borrowers and
lenders have asymmetric information about borrowers' risks. Hence, the first project aims to provide the first
empirical analyses of markets (i.e., demand and supply) with asymmetric information and nonexclusive
trades---i.e., markets in which households can purchase multiple insurance contracts, such as in life
insurance markets, or can open multiple credit lines, such as in credit card markets. The second project aims
to study recent regulations of fees and prices in markets for consumer financial products, such as mortgages,
that could have the unintended consequences of increasing households' cost of credit and, thus, of tightening
their borrowing constraints. Finally, the third project aims to study the role of borrowing constraints in
durable goods markets, with a special focus on car markets during the Great Recession.
All these projects aim to develop and estimate structural models using data from different markets. I further
plan to use the estimated structural parameters to perform counterfactual policy analyses in each of the
specific markets analyzed in these projects.