Fulford, Scott L. - 2014 - This version: May 2014; first draft: June 2010
Credit limit variability is a crucial aspect of the consumption, savings, and debt decisions of households in the … volatility and varies over the business cycle. While typical models of intertemporal consumption fix the credit limit, I … debts and low interest savings at the same time, since the savings act as insurance. Simulating the model using the …