We study a dynamic economy where credit is limited by insufficient collateral and, as a result, investment and output … are too low. In this environment, changes in investor sentiment or market expectations can give rise to credit bubbles …, that is, expansions in credit that are backed not by expectations of future profits (i.e. fundamental collateral), but …

access to credit attain higher wages for several periods after high school graduation. The unemployed maintain their … consumption by running down their assets, while the employed save to buffer against future unemployment spells. I also show that …, unlike in models with exogenous income streams, unemployment transfers, by allowing agents to attain higher wages do not …

in explaining the variability of unemployment and vacancies. If we incorporate long-term wage contracts into the model …

This paper studies the macroeconomic implications of firms' investment composition choices in the presence of credit … with no credit market imperfections. The effects are exacerbated by a steepening of the term structure of interest rates …

Spain. Exploiting regional variation over time, we find that babies are born healthier when the local unemployment rate is … being more likely to conceive when unemployment is high). We match multiple births to the same parents and find that the …