fluctuations in household wealth have driven major swings in economic activity. This paper considers so-called wealth effects - the … impact of changes in wealth on household consumption and the overall macroeconomy. There is an extensive existing literature …

lead to greater household defaults in the future if they also increase mortgage-to-income ratios. We show that the CS shock … study the effects of positive and negative credit supply (CS) shocks on subsequent household defaults on debt over the last …-induced (i) shifts of employment between the tradable and non-tradable sectors, (ii) changes in household income and (iii) in …