expected credit losses, are responsible for these features. Building on the idea that corporate debt, while safe in ordinary …Credit spreads are large, volatile and countercyclical, and recent empirical work suggests that risk premia, not … cyclicality of credit spreads, and variation in the corporate bond risk premium amplifies macroeconomic fluctuations in investment …

This paper characterizes the labor supply and borrowing of a household facing collateral requirements that limit its … debt and compel it to accumulate equity in its durable goods stock. The household's discount rate exceeds the market rate … of interest, so it would otherwise finance increased current consumption by borrowing against future wages. Collateral …

"This paper characterizes the labor supply and borrowing of a household facing collateral requirements that limit its … debt and compel it to accumulate equity in its durable goods stock. The household's discount rate exceeds the market rate … of interest, so it would otherwise finance increased current consumption by borrowing against future wages. Collateral …