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Household debt in many advanced economies has increased significantly since the 1980s and accelerated in the years …. Precautionary savings, due to labour income uncertainty, have also influenced household decisions especially, during the 2007 …
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-price declines. Our message is that household financial health matters for understanding this relationship. Two facts are essential … for our finding: (1) the decline in house prices led to an increase in household financial distress (FD) prior to the …
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. We uncover two essential facts: (1) the decline in house prices led to an increase in household financial distress prior …
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How much did shocks to household credit supply reduce employment in the Great Recession? To answer this question, I … by 3 percent. In partial equilibrium, the household credit channel implies employment losses equal to at least 20 percent …
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-financed overspending" hypothesis - that the correlation between high pre-crisis household indebtedness and subsequent spending cuts during … Muellbauer (2012) calls the "housing-collateral household demand" and Mian and Sufi (2018) the "debt-driven household demand …
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We estimate marginal propensities to consume from wealth shocks for Italian households in the early part of the Great Recession. Large asset price shocks in 2008 underpin an IV estimator. A euro fall in risky financial wealth resulted in cuts in annual total (non -durable) consumption of 8.5 ] 9...
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