1 option
Shale Shocked: Cash Windfalls and Household Debt Repayment / J. Anthony Cookson, Erik P. Gilje, Rawley Z. Heimer.
- Format:
- Book
- Author/Creator:
- Cookson, J. Anthony.
- Series:
- Working Paper Series (National Bureau of Economic Research) no. w27782.
- NBER working paper series no. w27782
- Language:
- English
- Physical Description:
- 1 online resource: illustrations (black and white);
- Place of Publication:
- Cambridge, Mass. National Bureau of Economic Research 2020.
- Summary:
- How do persistent cash flow shocks affect debt repayment across the distribution of households? Using individual data on natural gas shale royalty payments matched with credit bureau data for 215,639 consumers, we estimate that individuals repay 33 cents of debt per dollar of windfall, and that initially-subprime individuals repay approximately 5 times more debt than initially-prime individuals do. This difference in debt repayment is driven by changes to revolving debt balances. Finally, we show that debt repayment precedes durable goods consumption, particularly for households who were initially financially constrained. These results shed new light on how deleveraging affects household consumption.
- Notes:
- Print version record
- September 2020.
The Penn Libraries is committed to describing library materials using current, accurate, and responsible language. If you discover outdated or inaccurate language, please fill out this feedback form to report it and suggest alternative language.