Past research argues that changes in adjustable-rate mortgage (ARM) payments may lead households to cut back on consumption or to default on their mortgages. In this paper, we argue that these outcomes are more likely if ARM borrowers are borrowing constrained, and find that ARM borrowers...

Past research argues that changes in adjustable-rate mortgage (ARM) payments may lead households to cut back on consumption. These outcomes are more likely if ARM borrowers are borrowing constrained, and we show in this paper that ARM borrowers exhibit attitudes towards borrowing and behavior...

We study the effects of dispersion of investors' beliefs and dispersion of belief changes on stock trading volume. Unlike most of the existing work on the subject, our paper focuses on how investors' disagreements on macroeconomic variables affect marketwide trading volume. These macro variables...