From: Adverse selection, loan access and default behavior in the Chilean consumer debt market
Counterfactual Default definition | Borrower risk | All households risk | Portfolio risk | ||||||
---|---|---|---|---|---|---|---|---|---|
Arrears past year | Arrears (months) | Arrears past year | Arrears (months) | Arrears past year | Arrears (months) | ||||
1 | 3 | 1 | 3 | 1 | 3 | ||||
Baseline | 24.1 | 18.2 | 4.8 | 14.3 | 9.7 | 2.5 | 16.7 | 9.6 | 2.5 |
Pension law of 2022 | 24.0 | 18.1 | 4.8 | 14.3 | 9.6 | 2.5 | 16.6 | 9.5 | 2.5 |
Income test | 24.0 | 18.2 | 4.8 | 14.1 | 9.5 | 2.4 | 16.5 | 9.4 | 2.4 |
Financial literacy | 22.6 | 17.0 | 4.4 | 11.6 | 7.8 | 2.0 | 14.0 | 7.9 | 2.0 |