Tag Archives: Household Debt

“Cash on Hand” and Consumption: Evidence from Mortgage Refinancing

From Atif Mian and Amir Sufi: We investigate how house price and interest rate movements affect household spending through mortgage refinancing. Aggregate movements in house prices and interest rates generate sizable mortgage refinancing waves with a large amount of cross-sectional … Continue reading

Posted in Uncategorized | Tagged , , , , | Leave a comment

Household Debt and the Dynamic Effects of Income Tax Changes

From James Cloyne and Paolo Surico: This paper investigates a new channel in the transmission of fiscal policy: household debt. Using a long span of expenditure survey data and a new narrative measure of exogenous income tax changes for the UK, … Continue reading

Posted in Uncategorized | Tagged , , , , , , , , , , , , , | 1 Comment

Heterogeneity in the MPC: Evidence from the Crisis

We find evidence supportive of heterogeneity in the MPC by household income and leverage. For example, the MPC for households living in zip codes with an average annual income of less than $35 thousand is three times as large as … Continue reading

Posted in Uncategorized | Tagged , , , , , , , , , , , , , | 5 Comments