In this study, we set up a DSGE model with upward looking consumption comparison and show that consumption … credit to finance consumption. Furthermore, workers condition their consumption choice on the investors' level of consumption … credit moments, our proposed model significantly outperforms a model version in which we abstract from consumption …

credit to finance consumption. Furthermore, workers seek to minimize the difference between investors’ and their own … consumption level. Qualitatively, an income redistribution from labor to capital leads to consumer credit dynamics that are in …

Credit limit variability is a crucial aspect of the consumption, savings, and debt decisions of households in the … volatility and varies over the business cycle. While typical models of intertemporal consumption fix the credit limit, I …

The paper provides a simple theoretical framework to assess the macroeconomic implications of debt-fuelled consumption … highlights the role of the autonomous components of demand, and in particular autonomous consumption, as the main drivers of …-Kaleckian models, in the model proposed here output growth adjusts to the path of debt-financed consumption. Having treated investment …

uneven distribution of FD creates widely varying consumption responses to shocks. This is true even when subjecting regions …