This paper studies the direct impact of households' debt on consumption over the business cycle. We use household …' debt in past periods are not relevant in determining consumption; (ii) households adjust faster their consumption to debt … leverage, consumption, and asset prices. We find that debt levels exert a negative impact on consumption, which is particularly …

household expenditure data to examine which expenditure categories are prioritised when households enter into financial stress … important implications for how we understand household sensitivity to shocks and the behaviour of households with regards to …In a context of increasing attention to growing fixed payments, slim buffers, and unstable incomes in the household …