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 argue that positive co-movements between land prices and business investment are a driving force behind the broad … incorporating two key features into a DSGE model: We introduce land as a collateral asset in firms' credit constraints and we … joint dynamics of land prices and business investment …

We show that supply-side financial shocks have a large impact on firms' investment. We develop a new methodology to … of aggregate loan and investment fluctuations …

Which is the tighter constraint on private sector investment: weak property rights or limited access to external …

In this paper we investigate the macro-economic equilibria of an economy in which credit contracts have both adverse … selection and incentive effects. The terms of credit contracts include both an interest rate and a collateral requirement. We … credit is rationed …

reconsideration of models of price and quantity adjustment. We examine relationships between credit disturbances and real activity ….Second, extending earlier examinations of credit rationing as an outcome under imperfect information, we motivate this link by … considering the impact of deflation on credit availability. The addition of measures of credit rationing accompanying deflation …

stagflationary spiral. In the second model, credit rationing reduces investment, which cuts into both aggregate demand and supply … due to credit rationing. In each model, there are two possible regimes, depending on whether credit is or is not rationed … there is not. In the first model, credit rationing reduces working capital. There is a failure of effective supply in that …