Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/202921 
Year of Publication: 
2018
Series/Report no.: 
Working Papers No. 18-5
Publisher: 
Federal Reserve Bank of Boston, Boston, MA
Abstract: 
Focusing on localized measures of bank health and economic activity, and renters as well as homeowners, this paper uses an innovative approach to identifying households likely in need of credit to investigate the effect on household spending of a deterioration in local-bank health. The analysis shows that local-bank health tends to impact the expenditures of renters more than homeowners, with the strongest effects for households that likely need credit - those experiencing a negative income shock and having limited liquid wealth. These findings contribute to the discussion of the linkages between the financial sector and real economic activity.
Subjects: 
consumption
local-bank health
credit constraints
JEL: 
E21
G21
Document Type: 
Working Paper

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