Credit limit variability is a crucial aspect of the consumption, savings, and debt decisions of households in the … United States. Using a large panel, this paper first demonstrates that individuals gain and lose access to credit frequently … and often have their credit limits reduced unexpectedly. Credit limit volatility is larger than most estimates of income …

Most US credit card holders revolve high-interest debt, often combined with substantial (i) asset accumulation by …-existence, as well as target credit card utilization rates consistent with Gross and Souleles (2002). The benchmark model is …

debt, also government debt and corporate debt are in some countries at levels not seen before. While there is a common … agreement that these high debt levels are not sustainable there is fewer consensus about the effect of changes in debt and … especially debt levels on aggregate demand. Based on a cross country study of 18 European countries we show that there is a …

We ask two questions related to how access to credit affects the nature of business cycles. First, does the standard … theory of unsecured credit account for the high volatility and procyclicality of credit and the high volatility and … that more households than normal fare very poorly). Second, does access to credit smooth aggregate consumption or aggregate …

In a recent article, Keen resumes the debate with Krugman about the effects of debt upon the economy. It is hard to see …

Most US credit card holders revolve high-interest debt, often combined with substantial (i) asset accumulation by …-existence, as well as target credit card utilization rates consistent with Gross and Souleles (2002). The benchmark model is …