EconPapers    
Economics at your fingertips  
 

Household Debt and the Great Recession

Carlos Garriga (), Bryan J. Noeth and Don E. Schlagenhauf
Additional contact information
Bryan J. Noeth: Federal Reserve Bank of St. Louis
Don E. Schlagenhauf: Federal Reserve Bank of St. Louis

Review, 2017, vol. 99, issue 2, 183-205

Abstract: In the mid-2000s, household private debt reached a new level 1.2 times larger than personal income— before collapsing during the Great Recession. This paper uses microeconomic data to document the main changes in personal debt and explore the behavior of debt across generations over two periods: before and after the Great Recession. Special emphasis is placed on participation rates by category of debt (the extensive margin), volume borrowed (the intensive margin), and default behavior. Key findings include that between 1999 and 2013 the fraction of individuals with only unsecured (e.g., credit card) debt decreased, as did their balances. In addition, most forms of private debt (mortgages, credit card debt, and auto loans) had significant boom-bust cycles, but the effects across generations have been very asymmetric.

JEL-codes: D14 D31 (search for similar items in EconPapers)
Date: 2017
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3) Track citations by RSS feed

Downloads: (external link)
https://files.stlouisfed.org/files/htdocs/publicat ... -great-recession.pdf Full text (application/pdf)
https://doi.org/10.20955/r.2017.183-205 https://doi.org/10.20955/r.2017.183-205 (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:fip:fedlrv:00080

Ordering information: This journal article can be ordered from
https://files.stloui ... htdocs/publications/

DOI: 10.20955/r.2017.183-205

Access Statistics for this article

More articles in Review from Federal Reserve Bank of St. Louis Contact information at EDIRC.
Bibliographic data for series maintained by Anna Oates ().

 
Page updated 2019-08-15
Handle: RePEc:fip:fedlrv:00080