We investigate the welfare consequences of consumer credit regulation in a dynamic, heterogeneous-agent model with … endogenous lender market power. We incorporate a decentralized credit market with search and incomplete information frictions … into an off-the-shelf Eaton-Gersovitz model of consumer credit and default. Lenders post credit offers and borrowers apply …

I study the welfare consequences of regulations on high-cost consumer credit in the United States. I estimate a …

are investigated with a special focus on the credit channel that operates through the finance decision of firms. The … capital structure. Nevertheless, the credit channel creates relatively small effects of tax reforms on consumption, investment …