that have implications for budgetary policy, debt sustainability and for Euro membership. We use changes in the Credit …

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 …

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 …