assets, based almost entirely on a credit risk criterion. The paper provides both a theoretical and empirical framework for … credit risk. For example, our findings indicate that the RBC weights overpenalize home mortgages, which have an average … credit loss of 13 basis points, relative to commercial and consumer loans. The RBC rules also contain a significant bias …

This paper is a theoretical study into how credit constraints interact with aggregate economic activity over the … not only factors of production, but they also serve as collateral for loans. Borrowers' credit limits are affected by the … prices of the collateralized assets. And at the same time, these prices are affected by the size of the credit limits. The …

. In particular, the empirical relevance of quantity credit rationing in the transmission of monetary policy is studied … commitment. Our conclusion is that credit rationing for bank loans does occur, although loan commitments effectively protect … borrowers from credit rationing. Thus, loan commitments which insulate borrowers from the effects of quantity rationing force …

Standard economic theory says that unsecured, high-interest, short-term debt -- such as borrowing via credit cards and … transitory income shock of unemployment. Instead, individuals smooth their credit card debt and overdrafts by adjusting … consumption. We first use detailed longitudinal information on debit and credit card transactions, account balances, and credit …

We develop a tractable dynamic model of credit markets in which lending standards and the quality of potential … can amplify and prolong temporary downturns, affecting lending volume, credit spreads, and default rates. We characterize … constraints naturally incentivize tight lending standards, further amplifying shocks to credit markets …