Credit Growth and the Financial Crisis: A New Narrative

Abstract

and many seminar and conference participants for useful comments and suggestions. We also thank Matt Ploenzke, Harry Wheeler and Richard Svoboda for excellent research assistance. The views expressed herein are those of the authors and do not necessarily reflect the views of the National Bureau of Economic Research. NBER working papers are circulated for discussion and comment purposes. They have not been peer-reviewed or been subject to the review by the NBER Board of Directors that accompanies official NBER publications.

The Rise and Fall of Consumption in the 2000s: A Tangled Tale

“…Albanesi et al . () also point out that credit scores correlate with many factors, in particular age. Our extensive data collection is motivated by a desire to hedge against exactly that problem.…”

“…Albanesi et al . () criticize the view that the lending in the subprime boom was particularly concentrated in the subprime segment, pointing out that low credit scores are often found among the young as part of the lifecycle pattern.…”

The Homeownership Experience of Minorities During the Great Recession

“…Some recent research based on micro data has established a new narrative (see Adelino, Schoar, and Severino, 2016;Foote, Loewenstein, and Willen, 2016;Albanesi et al, 2016) that shows that the credit expansion during the boom and subsequent default during the bust were at least as prevalent in the middle to high part of the income and credit score distributions as they were in the bottom part of the distributions. In the data, high-income borrowers tend to have more mortgage debt than low-income borrowers.…”

House Prices and Consumption Inequality

“…(), and Albanesi et al. () . These papers are consistent with my results because I find that leverage is, if anything, positively correlated with the income and consumption distributions in the United Kingdom.…”