The co-movements of labor productivity with output, total hours, vacancies and unemployment have changed since the mid 1980s This paper offers an explanation for the sharp break in the fl uctuations of labor market variables based on endogenous labor supply decisions following the mortgage market deregulation Our exercise shows that the dynamic pattern of the labor market variables might have been substantially affected by the increase in household leverage in the US in the last twenty years We set up a search model with effi cient bargaining and fi nancial frictions, in which impatient borrowers can take an amount of credit that cannot exceed a proportion of the expected value of their real estate holdings When borrowers’ equity requirements are low, the impact of a positive technology shock on the marginal utility of consumption is strengthened, which in turn results in lower hours per worker and higher wages in the bargaining process This shift in labor supply discourages fi rms from opening vacancies, reducing the impact of the shock on employment

Household debt and labour market fluctuations

This paper presents some new results on the effects of technology shocks on hours worked based on structural VAR specifications containing various measures of US productivity growth and hours. These specifications can produce different answers depending on which sector of the economy is examined, which transformation of hours worked is used, and on how many lags are chosen for the VAR. However, it is shown that the results from the stochastic trend specification used by Jordi Gali (1999) are robust across changes in data definition and lag length, while the results from the per capita hours specification of Christiano, Eichenbaum, and Vigfusson (2003) are not. These results provide support for Gali's findings that technology shocks have a negative impact effect on hours worked and that these shocks play a limited role in generating the business cycle.

Technology shocks and hours worked: checking for robust conclusions

The article aims at determining factors influencing on Consumer Instalment Credit (CIC) with the case of Vietnam. Primary data from in-depth interview and sample of 580 from respondents surveyed from September to December of 2018 showed that education level, interest rates; income, age of customer have strong impacts on the growth of CIC in emerging country. From these findings, recommendations for authority agencies and banks were proposed to develop CIC in transitional country.

http://ijssei.in/index.php/ijssei/article/download/114/71

Determinants of Consumer Instalment Credit in Transitional Country: The case of Vietnam

This paper demonstrates that, in a standard RBC model, internal consumption habits alone are sufficient to generate positive comovements among key macroeconomic aggregates in response to news about future productivity. We highlight the prospective channel associated with internal habits, through which the effect of news shocks is transmitted to the present, stimulating current consumption, labor, and investment. Without this channel, other forms of preferences such as external habits fail to generate the positive comovements. The quantitative performance of the model is also discussed. Arguably, we provide a nearly minimal departure from the RBC framework to generate expectation-driven business cycles. 

Habit Formation and News-Driven Business Cycles

This paper demonstrates that, in a standard RBC model, internal consumption habits alone are sufficient to generate positive comovements among key macroeconomic aggregates in response to good news about future productivity. We highlight the prospective channel associated with internal habits, through which the effect of news shocks is transmitted to the present, stimulating current consumption, labor, and investment. Without this channel, other forms of preferences such as external habits fail to generate the positive comovements. The quantitative performance of the model is also discussed. Arguably, we provide a nearly minimal departure from the RBC framework to generate expectation-driven business cycles. 

In this study, the relation between consumer credit and real economic activity during the Great Moderation is studied in a dynamic stochastic general equilibrium model. Our model economy is populated by two different household types. Investors, who hold the economy’s capital stock, own the firms and supply credit, and workers, who supply labor and demand credit to finance consumption. Furthermore, workers seek to minimize the difference between investors’ and their own consumption level. Qualitatively, an income redistribution from labor to capital leads to consumer credit dynamics that are in line with the data. As a validation exercise, we simulate a three-shock version of the model and find that our theoretical set-up is able to reproduce important business cycle correlations.

/pdf/income-redistribution-consumer-credit-and-keeping-up-with-1yo9h4zyat.pdf

Income Redistribution, Consumer Credit, and Keeping Up with the Riches

Standard real business cycle models predict a rise in employment following a technology shock. In contrast, numerous empirical studies show that a technology shock leads to a decline in labor input. In this paper, we demonstrate that a flexible price model enriched with interpersonal comparison of consumption expenditures is able to generate a fall in employment in response to a technology shock. The negative labor response is robust to different values assigned to the inverse Frisch elastictiy of labor supply and integrating capital adjustment cost into the model.

Technology-Labor and Fiscal Spending Crowding-in Puzzles: The Role of Interpersonal Comparison

In this study, we set up a dynamic stochastic general equilibrium (DSGE) model with upward looking consumption comparison and show that consumption externalities are an important driver of consumer credit dynamics. Our model economy is populated by two different household types. Investors, who hold the economy's capital stock, own the firms and supply credit, and workers, who supply labor and demand credit to finance consumption. Furthermore, workers condition their consumption choice on the investors' level of consumption. We estimate the model and find a significant keeping up mechanism by matching business cycle statistics. In reproducing credit moments, our proposed model significantly outperforms a model version in which we abstract from consumption externalities.

/pdf/income-redistribution-consumer-credit-and-keeping-up-with-112h8ybb09.pdf

We analyze the efficiency properties of a general equilibrium model that focuses on the in-terplay of housing and credit markets. In a setting with heterogeneous households and uninsurable idiosyncratic risk, we study the impact of the inherent illiquidity of housing and its collateralizable nature on optimal financial taxes. We characterize constrained efficiency by sufficient statistics and find that Pareto improvements can be achieved by taxing borrowings and savings nonuniformly, such that the capital stock and housing price are re-duced. The illiquidity of houses limits how insurance can be implemented and determines that the socially efficient level of capital is below that of the laissez-faire outcome. Collateral-izability, in turn, introduces a trade-off when alleviating the social costs of the two frictions at play: we find that the socially more important margin is to improve households’ insurance, instead of enlarging their credit opportunities, achieved via less capital and a lower housing price.

Housing and Pecuniary Externalities *

Handle everyday research tasks with reliable, citation-backed results

Your personal Research Agent to handle research tasks with citation-backed results

Popular Tasks used by Researchers

How can I help with your research?

Meet SciSpace

Get more enhanced response by uploading the PDFs you want me to reference.

No relevant PDFs in your library

SciSpace is the AI research assistant for academics. Run systematic literature reviews on 280M+ papers, and write papers with cited sources. Trusted by 1M+ students, PhDs & researchers.

SciSpace | AI for Research

Analyze PDFs

Code & Manuscripts

Funding & Grants

Literature & Patents

Medical & Clinical Data

Systematic Review

Visualize & Present

Web & Data

Build a Google Scholar-like website for your research.

Build a website

Create charts and images for your research

Create a Chart

Write a paper for submission to a journal

Draft a manuscript

Patent Search

Design eye-catching scientific posters in minutes.

Scientific Poster Generation

Systematic Literature Review

One task is running at the moment. Your messages will be shown right after.

Drag and drop or click here to browse

Loved by <highlight>1 million+</highlight> researchers

Extract a list of specific topics and their sources from unstructured text

Topics

Compare and analyze relevant papers that matches with your search

Papers

Get insights from PDFs and bookmarked papers from your library

My library

Recent searches

Try searching for:

Catch AI-generated content in scholarly and non-scholarly content

{ai} Detector

Ai Writer

Get PDF Summaries, highlighted text explanations 

Chat with PDF

Effortlessly create in-text citations and bibliographies in APA and 2,500 other formats

Citation generator

Get explanations, summaries, and answers on academic papers

Ease up your research workflow with {scispace}'s cohort of exciting AI tools

Elevate your academic writing skills and convey your ideas the way you want

Paraphraser

Explore our range of reading and writing tools

Your file is being prepared and should be ready in a few minutes. If it's a large file, it might take a bit longer. You can close this window, and we'll email you the file when it's done.

You have reached a maximum limit of <strong>{limit}</strong> columns in the table. Remove at least <strong>1</strong> column to add or create another one.

Christopher Krause

Author Tools

Chat about Author

Papers

Income Redistribution, Consumer Credit, and Keeping Up with the Riches

Technology-Labor and Fiscal Spending Crowding-in Puzzles: The Role of Interpersonal Comparison

Income Redistribution, Consumer Credit, and Keeping Up with the Riches

Housing and Pecuniary Externalities *