The Economic Effects of the Consumer Over-Indebtedness Legislation in Italy: An Agent-Based Model

Consumer over-indebtedness is a growing phenomenon in EU countries. Legislation addressing debt solutions for consumers does not have long tradition Italy. In 2012 Italy defined settlement procedures to reduce the impact of over-indebtedness. We build disequilibrium agent-based model (abm), populated by heterogeneous who behave according boundedly rational behavioral rules. Through abm model, it will be possible test effects this regulatory framework on credit market, wealth distribution, and savings. particular, probability means local Tribunal accepts consumer plan has an important role balance between need provide appropriate solution enabling over-indebted individuals start over with their lives, one hand, economic efficiency that debts should paid.