expectations. Extrapolative income expectations help explain state-dependent household debt cycles qualitatively and quantitatively … high (low) income expectations relative to ex-post realizations after unexpected positive (negative) income shocks. These … extrapolative income expectations lead consumers to increase current spending, accumulate more debt, and face more defaults when …

Monitoring Survey (RLMS) for 1994-2005. We analyze cross-sectional income and consumption inequality and find that inequality … shocks. The response of consumption to permanent and transitory income shocks becomes weaker later in the sample, consistent …We construct key household and individual economic variables using a panel micro data set from the Russia Longitudinal …

previous economic downturns in other countries, the Brazilian recession was preceded by a substantial increase in household … debt from 2003 to 2014. This study utilizes a novel individual level data set on household borrowing in order to provide … details of the household debt boom. The data set allows for a decomposition of the rise in household debt by the type of debt …

across states shows that the rise in top income shares can explain almost all of the accumulation of household debt held as a …Rising income inequality since the 1980s in the United States has generated a substantial increase in saving by the top … of the income distribution, which we call the saving glut of the rich. The saving glut of the rich has been as large as …

We follow a representative panel of US borrowers to study the suspension of household debt payments (debt forbearance …. This large amount of debt relief significantly dampened the household debt distress, which can help explain household … economic activity. Relief flows more to higher income individuals than those receiving stimulus checks, partially due to their …

% more likely to participate in utility-based low-income assistance programs, controlling for zip code distributions of … income and other demographic characteristics. During the COVID-19 pandemic, there has been a nine-fold expansion in low-income … multiples higher in minority and low-income zip codes …

.S. household leverage from 2002 to 2006 and the increase in defaults from 2006 to 2008. Employing land topology-based housing … pay down high credit card balances, which suggests that borrowed funds may be used for real outlays (i.e., consumption or … home improvement). Home equity-based borrowing is stronger for younger households, households with low credit scores, and …

shortly thereafter. The model combines collateral constraints on households with heterogeneity of thrift in a calibrated …Market innovations following the financial reforms of the early 1980s relaxed collateral constraints on household … collateral constraints can explain a large fraction of the actual volatility decline in hours worked, output, household debt, and …

This chapter reviews empirical estimates of differential income and consumption growth across individuals during … recessions. Most existing studies examine the variation in income and consumption growth across individuals by sorting on ex ante … or contemporaneous income or consumption levels. We build on this literature by showing that differential shocks to …