| 来源类型 | Working Paper |
| 规范类型 | 报告 |
| DOI | 10.3386/w26354 |
| 来源ID | Working Paper 26354 |
| Credit Smoothing | |
| Sean Hundtofte; Arna Olafsson; Michaela Pagel | |
| 发表日期 | 2019-10-07 |
| 出版年 | 2019 |
| 语种 | 英语 |
| 摘要 | Standard economic theory says that unsecured, high-interest, short-term debt — such as borrowing via credit cards and bank overdraft facilities — helps individuals smooth consumption in the event of transitory income shocks. This paper shows that — on average — individuals do not use such borrowing to smooth consumption when they experience a typical transitory income shock of unemployment. Instead, individuals smooth their credit card debt and overdrafts by adjusting consumption. We first use detailed longitudinal information on debit and credit card transactions, account balances, and credit lines from a financial aggregator in Iceland to document that unemployment does not induce a borrowing response at the individual level. We then replicate this finding in a representative sample of U.S. credit card holders, instrumenting local changes in employment using a Bartik (1991)-style instrument. The absence of a borrowing response occurs even when credit supply is ample and liquidity constraints, captured by credit limits, do not bind. Standard economic models predict a strictly countercyclical demand for credit; in contrast, the demand for credit appears to be procyclical which may deepen business cycle fluctuations. |
| 主题 | Microeconomics ; Households and Firms ; Behavioral Economics ; Financial Economics |
| URL | https://www.nber.org/papers/w26354 |
| 来源智库 | National Bureau of Economic Research (United States) |
| 引用统计 | |
| 资源类型 | 智库出版物 |
| 条目标识符 | http://119.78.100.153/handle/2XGU8XDN/584025 |
| 推荐引用方式 GB/T 7714 | Sean Hundtofte,Arna Olafsson,Michaela Pagel. Credit Smoothing. 2019. |
| 条目包含的文件 | ||||||
| 文件名称/大小 | 资源类型 | 版本类型 | 开放类型 | 使用许可 | ||
| w26354.pdf（709KB） | 智库出版物 | 限制开放 | CC BY-NC-SA | 浏览 | ||
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