We develop a Neo-Classical growth model with habit formation to exhibit an equilibrium non-linear relationship between aggregate consumption growth and income growth. We provide empirical evidence consistent with this relationship both for the U.S. and France, and we estimate this non-linear...

The revolving credit available to consumers changes substantially over the business cycle, life cycle, and for individuals. We show that debt changes at the same time as credit, so credit utilization is remarkably stable. From ages 20-40, for example, credit card limits grow by more than 700...

We explore the link between international stock market comovement and the degree to which firms operate globally. Using stock returns and balance sheet data for companies in 20 countries, we estimate a factor model that decomposes stock returns into global, country-specific and industry-specific...