The intersection of research and policy on consumer credit often has a Goldilocks feel. Some researchers and … policymakers posit that consumer credit markets produce too much credit. Other researchers and policymakers posit that markets … produce too little credit. I review theories and evidence on inefficient consumer credit supply. For each of eight classes of …

The regulation of bank capital as a means of smoothing the credit cycle is a central element of forthcoming macro …-prudential regimes internationally. For such regulation to be effective in controlling the aggregate supply of credit it must be the case … credit are unable to offset changes in credit supply by affected banks. This paper examines micro evidence--lacking to date …

We study how a mortgage reform that exogenously increased access to credit had an impact on entrepreneurship, using … individual-level micro data from Denmark. The reform allows us to disentangle the role of credit access from wealth effects that … typically confound analyses of the collateral channel. We find that a $30,000 increase in credit availability led to a 12 basis …

underwriting; (2) reform of rating agency compensation, (3) risk retention in securitization, and (4) mandatory loan renegotiation …