ILLIQUIDITY TRAP: OVER-INDEBTED SUBJECTS AND THEIR COGNITIVE CONSEQUENCES

Guillermo León Toro-García; Sandra Balanta Cobo; Alexander Alegría Castellanos

doi:10.1590/S0034-759020240103x

ILLIQUIDITY TRAP: OVER-INDEBTED SUBJECTS AND THEIR COGNITIVE CONSEQUENCES

Guillermo León Toro-García
, Sandra Balanta Cobo
, Alexander Alegría Castellanos

Department of Economics and Finance

Universidad Javeriana

Research output: Contribution to journal › Article › peer-review

2 Scopus citations

Abstract

This research aims to show the cognitive constraints experienced by resulting from financial concerns and problems. A case study was conducted involving eight individuals living in different Colombian cities, who got into debt and faced an insolvency process. The results obtained are consistent with the theoretical-empirical framework proposed by Mullainathan and Shafir (2013), regarding the cognitive strain experienced by individuals with feeling of scarcity. This work contributes to the existing empirical literature and represents a first step toward the existence of a debt illiquidity trap that drives debtors to perpetuate their critical financial situation.

Translated title of the contribution	Trampa de iliquidez: Los sujetos sobreendeudados y sus consecuencias cognitivas
Original language	English
Article number	e2022-0445
Journal	RAE Revista de Administracao de Empresas
Volume	64
Issue number	1
DOIs	https://doi.org/10.1590/S0034-759020240103x
State	Published - 2024

UN SDGs

This output contributes to the following UN Sustainable Development Goals (SDGs)

SDG 9 Industry, Innovation, and Infrastructure

Keywords

armadilha de escassez
atención
atenção
attention
escasez
escassez
judgment and decision-making
juicio y toma de decisiones
julgamento e tomada de decisões
over-indebtedness
scarcity
scarcity trap
sobreendeudamiento
superendividamento
trampa de escasez

Access to Document

10.1590/S0034-759020240103x

Cite this

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title = "ILLIQUIDITY TRAP: OVER-INDEBTED SUBJECTS AND THEIR COGNITIVE CONSEQUENCES",

abstract = "This research aims to show the cognitive constraints experienced by resulting from financial concerns and problems. A case study was conducted involving eight individuals living in different Colombian cities, who got into debt and faced an insolvency process. The results obtained are consistent with the theoretical-empirical framework proposed by Mullainathan and Shafir (2013), regarding the cognitive strain experienced by individuals with feeling of scarcity. This work contributes to the existing empirical literature and represents a first step toward the existence of a debt illiquidity trap that drives debtors to perpetuate their critical financial situation.",

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year = "2024",

doi = "10.1590/S0034-759020240103x",

language = "English",

volume = "64",

journal = "RAE Revista de Administracao de Empresas",

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AU - Cobo, Sandra Balanta

AU - Castellanos, Alexander Alegría

PY - 2024

Y1 - 2024

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KW - armadilha de escassez

KW - atención

KW - atenção

KW - attention

KW - escasez

KW - escassez

KW - judgment and decision-making

KW - juicio y toma de decisiones

KW - julgamento e tomada de decisões

KW - over-indebtedness

KW - scarcity

KW - scarcity trap

KW - sobreendeudamiento

KW - superendividamento

KW - trampa de escasez

UR - https://www.scopus.com/pages/publications/85183768902

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DO - 10.1590/S0034-759020240103x

M3 - Article

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ER -

ILLIQUIDITY TRAP: OVER-INDEBTED SUBJECTS AND THEIR COGNITIVE CONSEQUENCES

Abstract

UN SDGs

Keywords

Access to Document

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