Search Results

SORT BY: PREVIOUS / NEXT
Keywords:precaution 

Working Paper
How important is variability in consumer credit limits?

Credit limit variability is a crucial aspect of the consumption, savings, and debt decisions of households in the United States. Using a large panel, this paper first demonstrates that individuals gain and lose access to credit frequently and often have their credit limits reduced unexpectedly. Credit limit volatility is larger than most estimates of income volatility and varies over the business cycle. While typical models of intertemporal consumption fix the credit limit, I introduce a model with variable credit limits. Variable credit limits create a reason for households to hold both high ...
Working Papers , Paper 14-8

Working Paper
Credit card utilization and consumption over the life cycle and business cycle

The revolving credit available to consumers changes substantially over the business cycle, life cycle, and for individuals. We show that debt changes at the same time as credit, so credit utilization is remarkably stable. From ages 20?40, for example, credit card limits grow by more than 700 percent, and yet utilization holds steadily at around 50 percent. We estimate a structural model of life-cycle consumption and credit use in which credit cards can be used for payments, precautionary smoothing, and life-cycle smoothing, uniting their monetary and revolving credit functions. Our estimates ...
Working Papers , Paper 17-14

FILTER BY year

FILTER BY Bank

FILTER BY Series

FILTER BY Content Type

FILTER BY Author

FILTER BY Jel Classification

D14 2 items

E21 2 items

D15 1 items

D91 1 items

E27 1 items

FILTER BY Keywords

precaution 2 items

buffer stock 1 items

consumption 1 items

credit card puzzle 1 items

credit cards 1 items

credit limits 1 items

show more (5)

PREVIOUS / NEXT