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Cohort Effects Are Differences Between Individuals That Stem from the Historical

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Cohort effects are differences between individuals that stem from the historical and social time period in which they were born and developed.


Definitions:

Debts

Money owed by one party, the debtor, to a second party, the creditor; typically referencing money borrowed to be paid back with interest.

Nominal Interest Rate

The interest rate before adjustments for inflation; the stated or named rate on a loan or financial product.

After-tax Real Interest Rate

The interest rate that an investor earns on an investment after paying taxes, adjusted for inflation.

Inflation Rate

The percentage increase in the price level of goods and services in an economy over a period of time, typically measured on a yearly basis.

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