earnings. Lastly, I introduce a shock to the credit market into the model in the form of loosening the borrowing constraints of …

decline in their relative permanent incomes since the early 1980s by reducing saving and increasing debt. This has temporarily … it also contributed to the creation of a credit bubble, which eventually burst, and a large current account deficit in …

presence of labor income uncertainty and credit constraints. Saving in the model is affected by the gap between 'target' and … actual wealth, with the target determined by credit conditions and uncertainty. An estimated structural version of the model … suggests that increased credit availability accounts for most of the long-term saving decline, while fluctuations in wealth and …

of labor income uncertainty and credit constraints. Saving in the model is affected by the gap between target and actual … wealth, with the target determined by credit conditions and uncertainty. An estimated structural version of the model … suggests that increased credit availability accounts for most of the long-term saving decline, while fluctuations in wealth and …

sustain debt. As a result, when the supply of credit increases and interest rates fall, they take on disproportionately more …The surge in credit and house prices that preceded the Great Recession was particularly pronounced in ZIP codes with a … credit. Owing to their low incomes, subprime households are constrained in their ability to meet interest payments and hence …

Revolving credit in the U.S. declined drastically in the last decade after several years of upward trending growth. We … show that the Ability to Pay provision of the Credit CARD Act of 2009, which places restrictions on credit card limits …, accounts for this decline. Extending a model of revolving credit to analyze this policy, we account for changes in credit …

We provide a model with endogenous portfolios of secured and unsecured household debt. Secured debt is collateralized … by durables whereas unsecured debt can be discharged in bankruptcy procedures. We show that the model matches the main … quantitative characteristics of observed wealth and debt portfolios in the US and some of the observed changes over time …

stance, global real interest rates, distorted incentives in credit markets, and financial innovation created the mix of … drivers of asset prices are global liquidity conditions. Central banks flooded the markets with ample liquidity. Mopping up … this excess liquidity will be one major task for central banks worldwide, which needs to be done in a coordinated fashion …

We provide a model with endogenous portfolios of secured and unsecured household debt. Secured debt is collateralized … by owner-occupied housing whereas unsecured debt can be discharged according to bankruptcy regulations. We show that the … calibrated model matches important quantitative characteristics of observed wealth and debt portfolios for prime-age consumers in …