Full Citation

Title: Consumption, Credit, and the Missing Young

Citation Type: Journal Article

Publication Year: 2023

ISBN:

ISSN: 1538-4616

DOI: 10.1111/JMCB.12973

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PMCID:

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Abstract: There are more young adults today with either no credit history or insufficient credit history to be scored by one of the major credit bureaus than there were before the Great Recession—a reality that is likely an outcome of the Credit Card Accountability Responsibility and Disclosure (CARD) Act of 2009–10. In regressions that include a rich set of controls, we show that measures of young adults missing a credit score in credit bureau data act as a drag on state-level consumption growth. We demonstrate that this effect is driven by young people's loss of access to credit since the legislation went into effect.

Url: https://onlinelibrary.wiley.com/doi/full/10.1111/jmcb.12973

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Authors: Cooper, Daniel; Gorbachev, Olga; Luengo-Prado, María José

Periodical (Full): Journal of Money, Credit and Banking

Issue: 2

Volume: 55

Pages: 379-405

Data Collections: IPUMS CPS

Topics: Poverty and Welfare

Countries: