Credit constraints that link a private agent's debt to market-determined prices create a systemic credit externality … negative income shocks that trigger a binding credit constraint. Quantitatively, the credit externality causes a modest …

burden on credit-constrained students. By contrast, gross forgone earnings do not have to be financed. We explore the … environment. We conclude that, on the margin, additional policies aimed at improving credit access will have little impact on …

This paper presents an empirical investigation of the role of credit in the post-stabilization consumption booms of … Mexico, Chile and Israel. Credit from the banking sector to the private sector expanded very rapidly following the … stabilizations. I show that this increase in credit reduced the proportion of consumers that were liquidity constrained in the …

This paper presents a dynamic theory of housing market fluctuations. It develops a life-cycle model where households …. The market interaction of young credit-constrained households with older or richer unconstrained households generates the … following results. (1) Current income of young credit-constrainded households affects housing prices independentlyof aggregate …