This paper studies how changes in household credit affect small business lending. First, we build a closed economy model that examines two opposing channels: a negative crowding out effect and a positive collateral effect. Our analysis shows that, following a household credit expansion, the...

This papers examines the potential link between household credit shocks and income inequality at the national level. For a sample of 32 developed and developing countries, we show that aggregate consumption temporarily increases in the short run and decreases in the long run in the face of...