In many industrial countries, ownership rates of risky assets have risen substantially over the past decade. This trend has potentially wideñranging implications for the intertemporal and cross-sectional allocation of risk, and for the macro economy, establishing the need for understanding...

Interest rates on consumer lending are lower when funds are tied to purchase of a durable good than when they are made available on an unconditional basis. Further, dealers often choose to bear the financial cost of their customers' credit purchases. This paper interprets this phenomenon in...