Athreya, Kartik B.; Mather, Ryan; Mustre-del-Río, José; … - 2019
-price declines. We find that financial distress among U.S. households amplified the sensitivity of consumption to house-price shocks …. We uncover two essential facts: (1) the decline in house prices led to an increase in household financial distress prior … to the decline in income during the recession, and (2) at the zip-code level, the prevalence of financial distress prior …