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Debt, delinquencies, and consumer spending

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Abstract

The sharp rise in household debt and delinquency rates over the last year has led to speculation that consumers will soon revert to more cautious spending behavior. Yet an analysis of the past relationship between household liabilities and expenditures provides little support for this view.

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  • Jonathan McCarthy, 1997. "Debt, delinquencies, and consumer spending," Current Issues in Economics and Finance, Federal Reserve Bank of New York, vol. 3(Feb).
    • Handle: RePEc:fip:fednci:y:1997:i:feb:n:v.3no.3
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    References listed on IDEAS

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    1. John V. Duca, 1995. "Credit availability, bank consumer lending, and consumer durables," Working Papers 9514, Federal Reserve Bank of Dallas.
    2. Ben S. Bernanke & Mark Gertler, 1995. "Inside the Black Box: The Credit Channel of Monetary Policy Transmission," Journal of Economic Perspectives, American Economic Association, vol. 9(4), pages 27-48, Fall.
    3. C. Alan Garner, 1996. "Can measures of the consumer debt burden reliably predict an economic slowdown?," Economic Review, Federal Reserve Bank of Kansas City, vol. 81(Q IV), pages 63-76.
    4. Mishkin, Frederic S, 1976. "Illiquidity, Consumer Durable Expenditure, and Monetary Policy," American Economic Review, American Economic Association, vol. 66(4), pages 642-654, September.
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    Cited by:

    1. Bruno Albuquerque & Georgi Krustev, 2018. "Debt Overhang and Deleveraging in the US Household Sector: Gauging the Impact on Consumption," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 64(2), pages 459-481, June.
    2. Dean M. Maki, 2000. "The growth of consumer credit and the household debt service burden," Finance and Economics Discussion Series 2000-12, Board of Governors of the Federal Reserve System (U.S.).
    3. Bacchetta, Philippe & Gerlach, Stefan, 1997. "Consumption and credit constraints: International evidence," Journal of Monetary Economics, Elsevier, vol. 40(2), pages 207-238, October.
    4. Thitima Chucherd, 2006. "The Effect of Household Debt on Consumption in Thailand," Working Papers 2006-06, Monetary Policy Group, Bank of Thailand.
    5. Cara S. Lown & Donald P. Morgan & Sonali Rohatgi, 2000. "Listening to loan officers: the impact of commercial credit standards on lending and output," Economic Policy Review, Federal Reserve Bank of New York, issue Jul, pages 1-16.
    6. Carolina Rezende Pereira & Suzane Strehlau, 2016. "Social Bond Development Through Continuous Indebtedness," Journal of Consumer Policy, Springer, vol. 39(2), pages 241-259, June.
    7. Lucia Dunn & Tufan Ekici & Paul J. Lavrakas & Jeffery A. Stec, 2004. "An Index to Track Credit Card Debt and Predict Consumption," Working Papers 04-04, Ohio State University, Department of Economics.
    8. Kathleen W. Johnson & Geng Li, 2007. "Do high debt payments hinder household consumption smoothing?," Finance and Economics Discussion Series 2007-52, Board of Governors of the Federal Reserve System (U.S.).
    9. Cristinel Constantin, 2017. "The Impact Of Incomes And Loans On Households’ Expenditures. Case Of Romania," Journal of Smart Economic Growth, , vol. 2(4), pages 13-22, December.

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