relative terms, and an overall improvement in household credit standing. New financing of durable consumption by borrowers with …-constrained households initially use more than 70% of the extra liquidity generated by mortgage rate reductions to repay credit card debt-- a …This paper investigates the impact of lower mortgage rates on household balance sheets and other economic outcomes …

credit limits generate an immediate and significant rise in debt, counter to the PIH. The average 'MPC out of liquidity …This paper utilizes a unique new dataset of credit card accounts to analyze how people respond to changes in credit … supply. The data consist of a panel of thousands of individual credit card accounts from several different card issuers, with …

debt and compel it to accumulate equity in its durable goods stock. The household's discount rate exceeds the market rate … constraints generate a positive comovement between the household's debt, the stock of durable goods and labor supply following …This paper characterizes the labor supply and borrowing of a household facing collateral requirements that limit its …

changes in household debt and savings during the 2007 recession. We find that while different segments of the population were …Using administrative credit report records and data collected through several special household surveys we analyze … higher saving rate appears to reflect a considerable decline in household debt, with households paying down mortgage debt in …

During the Great Recession, regions of the United States that experienced the largest declines in household debt also … model with credit frictions that affect both consumers and firms. In the model, tighter debt constraints raise the cost of … experienced the largest drops in consumption, employment, and wages. Employment declines were larger in the nontradable sector and …

This paper characterizes empirically how government budget variables, such as spending, taxes, and deficits, affected … private-sector consumption in the high-budget-deficit economy of Israel during the first half of the 1980s. The paper develops … and estimates an intertemporal optimizing model of consumption choice by finite-lived individuals. The evidence supports …

accounts for the run-up in household debt and consumption boom prior to the financial crisis, their subsequent collapse, and …We estimate a structural model of household liquidity management in the presence of long-term mortgages. Households … leverage, precautionary saving in liquid assets and illiquid home equity, debt repayment, mortgage refinancing, and default …

being credit rationed, loan size, and the probability of bankruptcy using household-level data from the Japanese Panel … Survey of Consumers, conducted by the Institute for Research on Household Economics, in conjunction with judicial data by … credit rationed and decreases loan size. Furthermore, we find that better judicial enforcement increases the probability of …

the dispersion of credit card interest rates nearly tripled, and the share of credit card debt of lower income households …Financial innovations are a common explanation of the rise in consumer credit and bankruptcies. To evaluate this story …