households and makes loans to entrepreneurs, in both countries. It has to finance a fraction of loans using equity. We … characterized by large credit losses in the US and a simultaneous sharp output reduction in the U.S. and the euro Area. Our results …

Most U.S. house price models break down in the mid-2000s due to the omission of exogenous changes in mortgage credit …. Previous models lack data on credit constraints facing first-time homebuyers. Incorporating a measure of credit conditions …

The U.S. house price boom has been linked to an unsustainable easing of mortgage credit standards. However, standard … time series models of U.S. house prices omit credit constraints and perform poorly in the 2000s. We incorporate data on … credit constraints for first-time buyers into a model of U.S. house prices based on the (inverted) demand for housing …

other credit effects. These models therefore capture important parts of the financial accelerator. The evidence is that … credit availability for U.K. and U.S. but not Japanese households has undergone large shifts since 1980. The average … of housing wealth was enhanced by financial innovations, such as home equity loans. The estimated housing collateral …

will make fewer noncollateralized loans or investments and relatively more extensions of collateralized finance in times of …-collateralized commercial paper can be econometrically attributable to measures of corporate credit/financial risk premiums. Because commercial … paper and bankers acceptances are short-lived, they are more timely measures of the availability of short-term credit than …