We use information from the last wave of the Spanish Survey of Households Finance to study the influence of debt on the … smaller MPC than non-indebted households. This negative association increases along with the amount of debt. We also find a … lower MPC for households that were subject to liquidity constraints in the previous year, and for those whose reference …

Using detailed micro data, we document that households often use "stimulus" checks to pay down debt, especially those … otherwise standard incomplete markets model. Because interest rates rise with debt, borrowers have increasingly larger … incentives to use an additional dollar to reduce debt service payments rather than consume. Using our calibrated model, we then …

(iv) credit constraints do not play a major role in shaping the debt-consumption nexus. We conclude that, in contrast to …This paper studies the direct impact of households' debt on consumption over the business cycle. We use household … leverage, consumption, and asset prices. We find that debt levels exert a negative impact on consumption, which is particularly …

We provide a model with endogenous portfolios of secured and unsecured household debt. Secured debt is collateralized … by owner-occupied housing whereas unsecured debt can be discharged according to bankruptcy regulations. We show that the … calibrated model matches important quantitative characteristics of observed wealth and debt portfolios for prime-age consumers in …

effect on unsecured household debt is less clear-cut. -- personal bankruptcy ; consumer credit ; redistributive taxes and …

dynastic, defaultable debt model to examine how the democratization of credit since the 1970s - modeled as both greater credit …We combine the Decennial Census, credit reports, and administrative earnings to create the first panel dataset linking … parent's credit access to the labor market outcomes of children in the U.S.We find that a 10% increase in parent's unused …