literature. Our findings can also be interpreted in the context of the secular decline in the US personal savings rate before the …

earnings. Lastly, I introduce a shock to the credit market into the model in the form of loosening the borrowing constraints of …

Mortgage originators use credit score cutoff rules to determine how carefully to screen loan applicants. Recent … research has hypothesized that these cutoff rules result from a securitization rule of thumb. Under this theory, an observed … adopted credit score cutoff rules in response to underwriting guidelines from Fannie Mae and Freddie Mac and offer a simple …

enough credit for college and the extent to which they are able to repay their student debts after. We then discuss optimal … student credit arrangements that balance three important objectives: (i) providing credit for students to access college and … finance consumption while in school, (ii) providing insurance against uncertain adverse schooling or post-school labor market …

Credit score cutoff rules result in very similar potential borrowers being treated differently by mortgage lenders … perapplicant fixed costs in screening. We then demonstrate that our theory fits the data better than the main alternative theory … already in the literature, which supposes cutoff rules are exogenously used by securitizers. Furthermore, we use our theory to …