Negative shocks to housing, most households’ largest consumption good, are expected to create strong credit demand to … smooth these shocks over time. We estimate and trace a credit demand curve for households who recently experienced a negative … price-sensitive, only a third would accept loans offered at the 30-year mortgage rate. We find a large impact of credit …

financial crisis. We develop a measure of local credit supply that is based on the market shares of the banks that serve a local … factors). The decrease in our credit supply indicator, which is strongly correlated to the growth of outstanding loans …The paper estimates the effects on the real economy of the sharp reduction in the supply of credit following the 2008 …