persistent growth in asset demand. We show theoretically that dynamic interactions between elastic credit supply (due to … leveraged borrowing) and persistent credit demand (due to consumption habit) can generate a multiplier-accelerator mechanism … are consistent with the basic features of investment booms and the consequent asset-market crashes led by excessive credit …

make ends meet and how to interact with the credit economy. This paper presents data showing that bankruptcy transforms how … people borrow. Despite very difficult financial circumstances after bankruptcy, most families initially refuse new credit. As … years elapse, more families begin to borrow. The overall pattern of credit use is restrained, however, compared both with …

We document cross-individual variation in U.S. credit card borrowing costs (APRs) that is large enough to explain … explain APR differences comparable to moving someone from the worst credit score decile to the best …

We document cross-individual variation in U.S. credit card borrowing costs (APRs) that is large enough to explain … explain APR differences comparable to moving someone from the worst credit score decile to the best …

We examine how the cost of corporate credit varies around fiscal consolidations aimed at reducing government debt …