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Household Leverage and the Recession
By:Callum Jones,Virgiliu Midrigan,Mr.Thomas Philippon
Published on 2018-08-30 by International Monetary Fund

We evaluate and partially challenge the ‘household leverage’ view of the Great Recession. In the data, employment and consumption declined more in states where household debt declined more. We study a model where liquidity constraints amplify the response of consumption and employment to changes in debt. We estimate the model with Bayesian methods combining state and aggregate data. Changes in household credit limits explain 40 percent of the differential rise and fall of employment across states, but a small fraction of the aggregate employment decline in 2008-2010. Nevertheless, since household deleveraging was gradual, credit shocks greatly slowed the recovery.

This Book was ranked at 4 by Google Books for keyword Monetary economics.

Book ID of Household Leverage and the Recession's Books is Vp9uDwAAQBAJ, Book which was written byCallum Jones,Virgiliu Midrigan,Mr.Thomas Philipponhave ETAG "XIFu9nIRpVc"

Book which was published by International Monetary Fund since 2018-08-30 have ISBNs, ISBN 13 Code is 9781484375020 and ISBN 10 Code is 1484375025

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