Household debt, student loan forgiveness, and human capital investment: a neo-Kaleckian approach

• Published in: Journal of post Keynesian economics Vol. 46; no. 1; pp. 173 - 206
• Main Author: Serra, Gustavo Pereira
• Format: Journal Article
• Language: English
• Published: Abingdon Routledge 02.01.2023; Taylor & Francis Ltd
• Subjects: Accumulation; Ambiguity; Borrowing; Capacity utilization; Capital formation; Capital investments; Consumption; Debt; Debt cancellation; Economic activity; Economic growth; Economic theory; Forgiveness; household debt; Households; Human capital; Interest rates; Keynesian theory; Long term; post-keynesian economics; Student loans; Students; Sustainability; United States > US

This paper aims to analyze the sustainability of student debt in the US. For this purpose, I build a neo-Kaleckian model in which households can borrow to either consume or invest in human capital. Next, I calibrate the model using US data to simulate the economic effects of specific policies such a...