Aggregate and Distributional Dynamics of Consumer Credit in the U. S

Don Schlagenhauf, Bryan Noeth and Carlos Garriga ()
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Bryan Noeth: Federal Reserve Bank of St Louis

No 1095, 2015 Meeting Papers from Society for Economic Dynamics

Abstract: This paper develops stylized facts on the dynamics of consumer credit in the United States in the period 2001-2013. The data allows to separate two distinct period: Pre and post Great Recession. We place special emphasis documenting the participation decision (extensive margin), the volume (intensive margin), and default. The analysis of the data reveals some key findings: Between 1999 and 2013, the fraction of individual with only unsecured debt has been decreasing in terms of participation and the size of their balances. The balances for individuals with mortgages increased until 2008, but then dramatically decreased during the Great Recession. The evidence allows to test existing theories of consumer (unsecured) credit by checking their consistency with the data (at the aggregate and distributional levels). This allows determining the relative importance of different factors driving the dynamics of credit. The baseline model calibrated for the period 2001-2008 and tested to capture the deleverage episode during the Great Recession.

Date: 2015
New Economics Papers: this item is included in nep-dge
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Persistent link: https://EconPapers.repec.org/RePEc:red:sed015:1095

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