Standard economic theory says that unsecured, high-interest, short-term debt -- such as borrowing via credit cards and … transitory 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 …

This paper develops a network model of interbank lending, in which banks decide to extend credit to their potential … literature on financial networks, we focus on how anticipation of future defaults may result in ex ante "credit freezes," whereby … banks refuse to extend credit to one another. We first characterize the terms of the interbank contracts and the patterns of …

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

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

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 …

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 …

Using novel data on 1,240 credit agreements, we investigate sources of contractual complexity in the leveraged loan …

microfinance institution. We offer a commitment contract inspired by the rotating structure of a ROSCA. Additional treatments test … savings contracts. We find substantial demand for both credit and savings contracts but no demand for additional commitment …

The long-run price elasticity of demand for credit is a key parameter for intertemporal modeling, policy levers, and … number of borrowers is also elastic. Credit bureau data does not show evidence of crowd-out. Competitors do not respond by …