the value of their housing stock. The purpose of this paper is to quantify the role of collateralized household debt in … model in terms of overall goodness of fit. In particular, the presence of housing collateral generates a positive … correlation between consumption and house prices. Finally we find that housing collateral induced spillovers account for a large …

constrained households. The reason is that the spillover effect from the business sector to the household sector occurs through a … labor income channel. With financially constrained households in the model, a collateral channel strengthens the spillover … effects and amplifies business cycles. Then this paper examines the effects of credit supply disruptions in the household …

This paper examines macroeconomic dynamics of household debt and housing prices. Drawing on Minsky's insights into … financial instability and cycles, our framework combines household debt dynamics with behavioral asset price dynamics in a … Keynesian macro model. We show that endogenous boom-bust cycles can emerge through the interaction between household debt and …

previous economic downturns in other countries, the Brazilian recession was preceded by a substantial increase in household … debt from 2003 to 2014. This study utilizes a novel individual level data set on household borrowing in order to provide … details of the household debt boom. The data set allows for a decomposition of the rise in household debt by the type of debt …

How much did shocks to household credit supply reduce employment in the Great Recession? To answer this question, I … by 3 percent. In partial equilibrium, the household credit channel implies employment losses equal to at least 20 percent …

We investigate the role and impact of household debt on the economic performance of the European economy during the … and 2013 to calculate regional indicators of household debt and property prices. The detailed information allows us to … household debt. Our analysis provides three main conclusions. First, in the period 2004-2006 the measure of credit shock was …

This study investigates the interrelation between the household leverage cycle, collateral constraints, and monetary … reveal that household deleveraging periods in the data on average coincide with periods of binding collateral constraints …-dependent tightness of collateral constraints accounts for the asymmetric effects of monetary policy across the household leverage cycle …

We show that the size of collateralized household debt determines an economy's vulnerability to crises of confidence … a collateral constraint. Over a specific range of debt levels this liquidity feedback effect is strong enough to give …