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The goal of this paper is to show that household-level financial distress (FD) varies greatly, meaning there is unequal …
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An increase in the household debt to GDP ratio in the medium run predicts lower subsequent GDP growth, higher … supply hypothesis,” we show that low mortgage spreads predict an increase in the household debt to GDP ratio and a decline in … subsequent GDP growth when used as an instrument. The negative relation between the change in household debt to GDP and …
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