We use direct evidence on credit constraints to study their importance for household consumption growth and for welfare …. We distentangle the direct effect on consumption growth of a currently binding credit constraints from the indirect … effect of a potentially binding credit constraint which generates consumption risk. Our data is focused on job losers. We …

for household appliances is flat. These findings contrast with the well documented decline in nondurable consumption at … older ages, and suggest that studies that estimate the overall discount rate from nondurable consumption may underestimate …