| 来源类型 | Discussion paper |
| 规范类型 | 论文 |
| 来源ID | DP8381 |
| DP8381 Household Leverage and the Recession | |
| Thomas Philippon; Virgiliu Midrigan | |
| 发表日期 | 2011-05-30 |
| 出版年 | 2011 |
| 语种 | 英语 |
| 摘要 | A salient feature of the recent U.S. recession is that output and employment have declined more in regions (states, counties) where household leverage had increased more during the credit boom. This pattern is difficult to explain with standard models of financing frictions. We propose a theory that can account for these cross-sectional facts. We study a cash-in-advance economy in which home equity borrowing, alongside public money, is used to conduct transactions. A decline in home equity borrowing tightens the cash-in-advance constraint, thus triggering a recession. We show that the evidence on house prices, leverage and employment across US regions identifies the key parameters of the model. Models estimated with cross-sectional evidence display high sensitivity of real activity to nominal credit shocks. Since home equity borrowing and public money are, in the model, perfect substitutes, our counter-factual experiments suggest that monetary policy actions have significantly reduced the severity of the recent recession. |
| 主题 | International Macroeconomics |
| 关键词 | Cash-in-advance Household credit Housing Leverage monetary policy Recession |
| URL | https://cepr.org/publications/dp8381 |
| 来源智库 | Centre for Economic Policy Research (United Kingdom) |
| 资源类型 | 智库出版物 |
| 条目标识符 | http://119.78.100.153/handle/2XGU8XDN/537229 |
| 推荐引用方式 GB/T 7714 | Thomas Philippon,Virgiliu Midrigan. DP8381 Household Leverage and the Recession. 2011. |
| 条目包含的文件 | 条目无相关文件。 | |||||
除非特别说明，本系统中所有内容都受版权保护，并保留所有权利。
