During the Great Recession, the collapse of consumption across the U.S. varied greatly but systematically with house …-price declines. We find that financial distress among U.S. households amplified the sensitivity of consumption to house-price shocks …-estimated-dynamic model to measure the financial distress channel, we find that these two facts amplify the aggregate drop in consumption by 7 …

, the paper analyzes the impact of a monetary policy shock on households' current consumption and durable expenditures … depends on their debt and income levels. In particular, households with higher debt tend to reduce their current consumption …

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 …

high-cost consumption loans. I investigate the extent to which adverse events drive loan demand, or if it is more likely to …

confidence may drive house prices and aggregate consumption. …