We show that the size of collateralized household debt determines an economy's vulnerability to crises of confidence … a collateral constraint. Over a specific range of debt levels this liquidity feedback effect is strong enough to give … entertainable belief-weightings of multiple future prices. This delivers debt-level-dependent bounds on the extent to which …

available on an unconditional basis. Further, dealers often choose to bear the financial cost of their customers' credit …' intertemporal consumption decisions when their borrowing and lending rates are different not only from each other, but also from the … borrowing and lending rates, and of the pricing of cash and credit purchases. We then study theoretical and empirical …

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

-shaped profile by age. Third, we show how credit card debt has evolved along the income distribution. Finally, we document a large …In this survey, we review the quantitative macroeconomic literature analyzing consumer debt and default. We start by … with a comprehensive empirical section, describing key facts about consumer debt, defaults and delinquencies, as well as …

and second moments of inflation expectations separately affect subsequent household decisions. We document several key … encourages household job search, leading to higher subsequent employment among the unemployed and less under-employment among the …

subsequent monthly consumption decisions relative to those in a control group. The causal effects of elevated inflation … expectations on non-durable spending are imprecisely estimated but there is a sharp negative effect on durable spending. We provide … as well as aggregate spending when they increase their inflation expectations. There is little evidence to support the …

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 … person is self-employed. We observe that the past relationship between income and consumption is also an important …

Aging populations in developing countries have spurred the introduction of public pension programs to preserve the …

between 2010 and 2014 in Belgium, using panel data from the two waves of the Household Finance and Consumption Survey. Unlike …This paper investigates the potentially non-linear relation between households' indebtedness and their consumption … previous studies, we find a negative effect of households' indebtedness on their consumption, even in the absence of negative …