economic and sociodemographic characteristics in predicting applications for credit and the size of debt. The paper uses … microdata from the Estonian Household Finance and Consumption Survey (HFCS) and estimates probit and Heckman models. My analysis … larger. The variables describing the household's expectations for its future financial situation are on their own related to …

target rate robustly leads to an immediate decline in household confidence, at odds with previous findings that suggest … not have similarly clear and robust immediate effects on household beliefs. We document heterogeneity across demographics …