This paper proposes a tractable way to incorporate lending standards ("credit qualification thresholds") into macro models of financial frictions. Banks can reject borrowers whose risk is above an endogenous threshold at which no lending rate sufficiently compensates banks for the borrowers'...

This paper proposes a tractable way to incorporate lending standards ("credit qualification thresholds") into macro models of financial frictions. Banks can reject borrowers whose risk is above an endogenous threshold at which no lending rate sufficiently compensates banks for the borrowers’...

We study the effects of news about sea level rise on housing markets. We exploit a natural experiment in Spain. In 2014 Greenpeace published an alarming report predicting catastrophic consequences for La Manga, a tourist peninsula. The report was widely cited in the local news. We find that the...