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 …

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

-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 …

A growing literature shows that credit indicators forecast aggregate real outcomes. While researchers have proposed … simple, frictionless, model explains empirical findings commonly attributed to credit cycles. Our key assumption is that … firms have heterogeneous exposures to underlying economy-wide shocks. This leads to endogenous dispersion in credit quality …

back into financial conditions, prolonging the credit boom and delaying the response to the bubble when the speculative …

This paper is a theoretical study into how credit constraints interact with aggregate economic activity over the … not only factors of production, but they also serve as collateral for loans. Borrowers' credit limits are affected by the … prices of the collateralized assets. And at the same time, these prices are affected by the size of the credit limits. The …

We study a dynamic economy where credit is limited by insufficient collateral and, as a result, investment and output … are too low. In this environment, changes in investor sentiment or market expectations can give rise to credit bubbles …, that is, expansions in credit that are backed not by expectations of future profits (i.e. fundamental collateral), but …

Theory predicts that there is a close link between bank credit supply and the evolution of the business cycle. Yet …. Conditional on issuance of new debt, we interpret firm's switching from loans to bonds as a contraction in bank credit supply. We …

This paper provides a simple model showing that the extent of competition in credit markets is important in determining … the value of lending relationships. Creditors are more likely to finance credit constrained firms when credit markets are … implications about the availability and the price of credit as firms age in different markets. The paper offers evidence for these …