We document the cyclical properties of unsecured consumer credit (procyclical and volatile) and of consumer … access to unsecured credit (because of bankruptcy costs) and aggregate shocks, we show that the cyclical behavior of … household earnings growth accounts for these properties, albeit not for the large volatility of credit. We find that tilting …

Credit limit variability is a crucial aspect of the consumption, savings, and debt decisions of households in the … United States. Using a large panel, this paper first demonstrates that individuals gain and lose access to credit frequently … and often have their credit limits reduced unexpectedly. Credit limit volatility is larger than most estimates of income …

There are more young adults today with either no credit history or insufficient credit history to be scored by one of … the major credit bureaus than there were before the Great Recession−a reality that is likely an unintended outcome of the … missing from credit bureau data act as a drag on state-level consumption growth. This finding seems to be driven by young …

Most US credit card holders revolve high-interest debt, often combined with substantial (i) asset accumulation by …-existence, as well as target credit card utilization rates consistent with Gross and Souleles (2002). The benchmark model is …

I explain the credit card debt puzzle – the co-holding of high-cost debt and low-yield liquid assets – with a household … option to reduce high-cost debt. At the individual level, anchoring contributes to co-holding, because credit card debt … and individual determinant that lower debt repayments. At the household level, co-holding is consistent with intra …

This paper explores a rational economic explanation for the much discussed credit card debt puzzle. We set-up and … simulate a generalization of the buffer-stock consumption model with longterm revolving debt contracts. In line with US credit … card law, lenders can always deny households access to new debt, but they cannot demand immediate repayment of the …

This paper addresses the credit card debt puzzle using a generalization of the buffer‐stock consumption model with long …‐term revolving debt contracts. Closely resembling actual US credit card law, we assume that card issuers can always deny their … from the empirical distributions of credit card debt and liquid assets. …

Most US credit card holders revolve high-interest debt, often with substantial liquid and retirement assets. We model …, after allowing for standard determinants of credit card debt … separation of accounting from shopping allowed by credit cards, in a rational, dynamic game. When the shopper is more impatient …