productivity was the shock that initiated the household debt boom and bust. The credit supply view is supported by four facts … in aggregate household debt. Fourth, the default crisis was driven mainly by lower credit score individuals. The view … that credit played only a passive role in explaining the rise in household debt and the subsequent default crisis is …

fully decentralized agents. The model indicates that promoting consumer credit can at best provide a very short-lived relief …

The goal of this paper is to show that household-level financial distress (FD) varies greatly, meaning there is unequal … facts: (i) regions in the U.S. vary significantly in their "FD-intensity," measured either by how much additional credit …