This paper investigates the impact of uncertainty on consumer credit outcomes. We develop a local measure of economic … uncertainty capturing county-level labor market shocks. We then exploit microeconomic data on mortgages and credit-card balances … absent and the cost of mortgage credit declines, suggesting that lenders reallocate credit towards safer borrowers when …

This paper investigates the impact of uncertainty on consumer credit outcomes. We develop a local measure of economic … uncertainty capturing county-level labor market shocks. We then exploit microeconomic data on mortgages and credit-card balances … absent and the cost of mortgage credit declines, suggesting that lenders reallocate credit towards safer borrowers when …

activities than their younger counterparts. Generally, the results reveal that the household whose age is relatively small should …-cycle theory which suggests that younger households have expectations of their income to rise in the future as opposed to the older … head of the household is the enabling factor for the household to borrow due to the financial literacy awareness one can …