The paper examines the effect of household financial indebtedness on the psychological well-being of mothers, using a large household survey of families with children for Britain. Although some existing studies find a link between debt and depression, they tend to utilise small and often highly...

The ‘financial accelerator’ model when applied to households states that shocks to household balance sheets (primarily changes in house prices) amplify fluctuations in consumer spending by tightening or relaxing collateral constraints on borrowing. We construct an alternative model where...