Household Credit Usage

1. Front Matter

   Pages i-xiv

   PDF

2. Introduction

   1. Front Matter

      Pages 1-1

      PDF

   2. Household Finance and the Financial Decision-Making Process

      • Sumit Agarwal, Brent W. Ambrose

      Pages 3-9

3. Household Credit—Demand and Supply

   1. Front Matter

      Pages 11-11

      PDF

   2. Recent Developments in the Credit Card Market and the Financial Obligations Ratio

      • Kathleen W. Johnson

      Pages 13-35

   3. Whither Consumer Credit Counseling

      • Robert M. Hunt

      Pages 37-54

   4. Consumption, Debt, and Portfolio Choice: Testing the Effects of Bankruptcy Law

      • Andreas Lehnert, Dean Maki

      Pages 55-76

4. Household Use of Personal Credit

   1. Front Matter

      Pages 77-77

      PDF

   2. Collateral and Sorting: An Empirical Investigation of the Market for HELOCs

      • Shubhasis Dey, Lucia Dunn

      Pages 79-91

   3. Asymmetric Information and the Automobile Loan Market

      • Sumit Agarwal, Brent W. Ambrose, Souphala Chomsisengphet

      Pages 93-116

   4. Introductory Credit Card Offers and Balance Switching Behavior of Cardholders

      • Tufan Ekici, Lucia Dunn, Tae Hyung Kim

      Pages 117-131

   5. An Exploration of Usage of Personal Credit Cards by Small Businesses

      • Grace Kim

      Pages 133-147

   6. Debit Cards: The New, Old Way to Pay

      • Marc Anthony Fusaro

      Pages 149-159

   7. Linkages between Consumer Payments and Credit

      • Sujit Chakravorti

      Pages 161-174

   8. Payday Lending: Evolution, Issues, and Evidence

      • Katherine A. Samolyk

      Pages 175-200

5. Household Use of Mortgage Debt

   1. Front Matter

      Pages 201-201

      PDF

   2. Do Renters Miss the boat? Homeownership, Renting, and Wealth Accumulation

      • C. Tsuriel Somerville, Paulina Teller, Michael Farrell, Yosh Kasahara, Li Qiang

      Pages 203-217

   3. Choosing between Fixed- and Adjustable-Rate Mortgages

      • Monica Paiella, Alberto Franco Pozzolo

      Pages 219-236

   4. Interest Rates in the Sub-Prime Mortgage Market

      • Souphala Chomsisengphet, Anthony Pennington-Cross

      Pages 237-252

   5. Default and Prepayment Risk in Residential Mortgage Loans: A Review and Synthesis

      • Michael LaCour-Little

      Pages 253-266

In response to growing interest in household finance, this collection of essays with a foreword by John Y. Campbell, studies household and consumer use of credit instruments. It shows how individual consumers and households utilize various credit alternatives in managing their consumption and savings and suggests areas for future research.

• business
• consumer
• interest rates
• Personal

• Federal Reserve Bank of Chicago, USA

  Sumit Agarwal

• Pennsylvania State University, USA

  Brent W. Ambrose

SUMIT AGARWAL is a financial economist in the research department at the Federal Reserve Bank of Chicago, USA. His research interests include issues relating to household finance, as well as corporate finance, financial institutions and capital markets. His research has been published in the Journal of Money, Credit and Banking, Journal of Financial Intermediation, Journal of Housing Economics and Real Estate Economics. Prior to joining the Chicago Fed in July 2006, Agarwal was a Senior Vice President and Credit Risk Management Executive in the Small Business Risk Solutions Group of Bank of America. He also served as an adjunct professor in the finance department at the George Washington University. Agarwal received a Ph.D. from the University of Wisconsin-Milwaukee, USA.

BRENT W. AMBROSE is the Jeffery L. and Cindy M. King Faculty Fellow in Business and Professor of Real Estate at the Pennsylvania State University, USA. Prior to joining Penn State University, Dr. Ambrose was the Director of the Center for Real Estate Studies and Professor of Finance at the University of Kentucky where he held the Kentucky Real Estate Professorship. In addition, Dr. Ambrose was an Associate Professor at the University of Wisconsin-Milwaukee where he directed the UWM real estate program and from 1997 to 1998 he was a Visiting Associate Professor and Research Fellow at the University of Pennsylvania Wharton School of Business. Dr. Ambrose served as the Executive Vice President of the American Real Estate and Urban Economics Association from 1996 to 2003 and in 2003 was elected a Fellow of the Weimer School of Advanced Studies in Real Estate and Land Economics at the Homer Hoyt Advanced Studies Institute. In 2004, he was elected a Fellow of the Real Estate Research Institute and in 2006 he was appointed a Fellow of the FDIC Center for Financial Research. Currently, Dr. Ambrose serves on the editorial boards of the Journal of Real Estate Finance and Economics, the Journal of Real Estate Research, and Real Estate Economics, and is a member of the board of directors for the Real Estate Research Institute and the American Real Estate and Urban Economics Association.

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