In a field experiment that constructs randomized credit limit shock, participants borrow to spend 11 cents on the dollar in first quarter and 28 by third year. Effects extend those far from limit, who had new limits as available credit, with liquid asset buffer. short-run, flexible installment contracts are used tandem, unconstrained using installments more. Long-run borrowing is predominantly ...

Measuring the sensitivity of housing demand to mortgage rates and available leverage is challenging because there generally no exogenous variation in these variables. This paper circumvents this issue by designing a strategic survey which respondents report their willingness pay (WTP) for home under different financing scenarios. Relaxation down payment constraints or an increase nonhousing wea...

Borrower-based macroprudential (MP) policies - such as caps on loan-to-value (LTV) ratios and debt-service-to-income (DSTI) limits contain the build-up of systemic risk by reducing probability conditional impact a crisis. While LTV/DSTI can increase inequality at introduction, they dampen in under adverse macroeconomic conditions. The relative size these opposing effects is an empirical questio...

We use quasi-random access to the Home Affordable Refinance Program (HARP) identify causal effect of refinancing into a lower-rate mortgage on borrower balance sheet outcomes. Refinancing substantially reduces default rates mortgages and other debt. also causes borrowers expand their debt instruments, such as auto loans, home equity lines, consumer debts that are proxies for spending. Borrowers...

Credit spreads display occasional spikes and are more strongly countercyclical in times of elevated financial stress. Financial crises extreme cases this nonlinear behavior, featuring skyrocketing credit spreads, sharp losses bank equity, deep recessions. We develop estimate a macroeconomic model with banking sector which banks’ leverage constraints occasionally binding equity issuance is endog...

This paper evaluates the literature on international unconventional monetary policies (UMPs). Introducing market segmentation, limits-to-arbitrage, and time-consistent policy in standard models permits a theoretical role for UMP. Empirical studies provide compelling evidence that UMPs influenced asset prices tail risk desired manner. Calibrated modeling vector autoregressive (VAR) exercises imp...

The purpose of this research is to examine the effect Islamic leadership and work ethics on employee performance banks in Riau province, whereby organizational culture became mediator variable. This employs Structure Equation Model (SEM) based Partial Least Square (PLS) with help SmartPLS 3.0 M3 software. data were collected by using a questionnaire from 275 respondents. respondent was an Provi...

Trading frictions in financial markets affect more long-term than short-term bonds, generating an upward-sloping yield curve. Long-term financing is expensive economies with higher trading so firms choose to borrow and invest shorter horizons lower productivity projects. The theory guides a new identification of the slope liquidity spread data. We measure calibrate model for United States, coun...