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 …

-correction equations for Canadian aggregate consumption, house prices and mortgage debt. We find strong evidence that, after controlling … increase the mortgage down-payment requirement and reduce consumption, although there is evidence for some attenuation of this …There is widespread agreement that, in the United States, higher house prices raise consumption via collateral or …

a decomposition of consumption responses into direct, indirect, average, and cross-sectional effects. We show that the …

sample for investigating the relevance of the housing net worth channel to consumption developments. The evidence presented … consumption. It does not have an impact outside that downturn. Consequently, the results add to the international evidence of how … an accumulation of household debt and a downturn in house prices has a substantial adverse impact on consumption. …

This chapter reviews empirical estimates of differential income and consumption growth across individuals during … recessions. Most existing studies examine the variation in income and consumption growth across individuals by sorting on ex ante … or contemporaneous income or consumption levels. We build on this literature by showing that differential shocks to …