Arbeitspapier
Household leveraging and deleveraging
U.S. households' debt skyrocketed between 2000 and 2007, but has since been falling. This leveraging and deleveraging cycle cannot be accounted for by the liberalization and subsequent tightening of mortgage credit standards that occurred during the period. We base this conclusion on a quantitative dynamic general equilibrium model calibrated using macroeconomic aggregates and microeconomic data from the Survey of Consumer Finances. From the perspective of the model, the credit cycle is more likely due to factors that impacted house prices more directly, thus affecting the availability of credit through a collateral channel. In either case, the macroeconomic consequences of leveraging and deleveraging are relatively minor because the responses of borrowers and lenders roughly wash out in the aggregate.
- Language
-
Englisch
- Bibliographic citation
-
Series: Staff Report ; No. 602
- Classification
-
Wirtschaft
Macroeconomics: Consumption; Saving; Wealth
Business Fluctuations; Cycles
- Subject
-
household debt
house prices
mortgages
Private Verschuldung
Hypothek
Konjunktur
Allgemeines Gleichgewicht
Theorie
USA
- Event
-
Geistige Schöpfung
- (who)
-
Justiniano, Alejandro
Primiceri, Giorgio E.
Tambalotti, Andrea
- Event
-
Veröffentlichung
- (who)
-
Federal Reserve Bank of New York
- (where)
-
New York, NY
- (when)
-
2013
- Handle
- Last update
-
10.03.2025, 11:45 AM CET
Data provider
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
Object type
- Arbeitspapier
Associated
- Justiniano, Alejandro
- Primiceri, Giorgio E.
- Tambalotti, Andrea
- Federal Reserve Bank of New York
Time of origin
- 2013
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