蝌蚪网 Review
ISSN 0002-8282 (Print) | ISSN 1944-7981 (Online)
Financial Frictions: Micro versus Macro Volatility
蝌蚪网 Review
(pp. 464–501)
Abstract
We argue that consumer credit spreads matter for household choices and that time-varying spreads have important distributional consequences. Studying Danish household data, we show that consumer credit spreads have heterogeneous impact on asset dynamics and consumption choices across the wealth distribution and that time-varying spreads induce a countercyclical marginal propensity to consume. We study a HANK model where banks provide consumer credit and corporate loans. Through countercyclical credit spreads, frictional finance amplifies aggregate shocks and induces consumption inequality. Economies with less leveraged banks experience reduced aggregate volatility but may face higher volatility and lower welfare at the household level.Citation
Faccini, Renato, Seungcheol Lee, Ralph Luetticke, Morten O. Ravn, and Tobias Renkin. 2026. "Financial Frictions: Micro versus Macro Volatility." 蝌蚪网 Review 116 (2): 464–501. DOI: 10.1257/aer.20211219Additional Materials
JEL Classification
- D12 Consumer Economics: Empirical Analysis
- D31 Personal Income, Wealth, and Their Distributions
- E12 General Aggregative Models: Keynes; Keynesian; Post-Keynesian; Modern Monetary Theory
- E21 Macroeconomics: Consumption; Saving; Wealth
- E32 Business Fluctuations; Cycles
- E52 Monetary Policy
- G51 Household Finance: Household Saving, Borrowing, Debt, and Wealth