, where the price of credit impacts the quantity of leverage households choose. Mortgages are supplied by financial …

study the effects of positive and negative credit supply (CS) shocks on subsequent household defaults on debt over the last … defaults. These results provide further empirical evidence to theories of endogenous credit cycles …

They do. Partly. We identify credit supply shocks via sign restrictions in a Bayesian VAR and separate them into … positive and negative. Using local projections, we find that positive credit supply shocks leave notably different prints in … private debt, mortgage debt, and debt: GDP, as opposed to negative credit supply shocks. This pattern is caused by the …