Standard economic theory says that unsecured, high-interest, short-term debt — such as borrowing via credit cards and … income shock of unemployment. Instead, individuals smooth their credit card debt and overdrafts by adjusting consumption. We … first use detailed longitudinal information on debit and credit card transactions, account balances, and credit lines from a …

-constrained investors to take excessive risks. Ignored are unconstrained investors speculating on higher prices during credit booms. To … a bank/brokerage-credit-fueled stock-market bubble. The direct effect is a 25 cent increase in a stock's market …

the financial health of the contracting parties and uncertainty regarding the borrowers' credit quality. The relative …

The market for corporate credit is characterized by significant seasonal variation, both in interest rates and the …

We develop a tractable dynamic model of credit markets in which lending standards and the quality of potential … can amplify and prolong temporary downturns, affecting lending volume, credit spreads, and default rates. We characterize … constraints naturally incentivize tight lending standards, further amplifying shocks to credit markets …

We evaluate the impact of the credit conditions facing corporations on their emissions of toxic air pollutants … that positive shocks to credit conditions reduce corporate pollution …

-employee literature. We construct firm-specific exogenous credit supply shocks and estimate their direct and indirect effects on real … activity using firm-specific measures of upstream and downstream exposure. Credit supply shocks have sizable direct and … crisis. In terms of mechanisms, trade credit extended by suppliers and price adjustments play a role in accounting for …

We develop a theory of trust in lending, distinguishing between trust and reputation, and use it to analyze the …