Northwestern Kellogg logo

Take Action

Home | Faculty & Research Overview | Research

Research Details

Debt and the Response to Household Income Shocks: Validation and Application of Linked Financial Account Data, Journal of Political Economy

Abstract

The increasing availability of data derived from linked consumer financial accounts has the potential to dramatically expand the potential for research. Examining the most comprehensive existing set of linked-account data, consisting of transaction and balance sheet data for millions of Americans, I demonstrate the power and versatility of such sources. I discuss advantages and concerns arising from this type of data and match a range of distributional moments to external sources. As one application, I test consumption elasticities across households with varying levels, and types, of debt. I find that heterogeneity in consumption elasticity can be explained entirely by credit and liquidity.

Type

Article

Author(s)

Scott Baker

Date Published

2018

Citations

Baker, Scott. 2018. Debt and the Response to Household Income Shocks: Validation and Application of Linked Financial Account Data. Journal of Political Economy.(4): 1504-1557.

KELLOGG INSIGHT

Explore leading research and ideas

Find articles, podcast episodes, and videos that spark ideas in lifelong learners, and inspire those looking to advance in their careers.
learn more

COURSE CATALOG

Review Courses & Schedules

Access information about specific courses and their schedules by viewing the interactive course scheduler tool.
LEARN MORE

DEGREE PROGRAMS

Discover the path to your goals

Whether you choose our Full-Time, Part-Time or Executive MBA program, you’ll enjoy the same unparalleled education, exceptional faculty and distinctive culture.
learn more