Econintersect: Have you ever wondered whether “keeping up with the Joneses” was a significant force behind the great leveraging of households debt leading up to the Great Recession? Was the growth in household borrowing during the mid-2000s driven by credit supply expansions targeted toward lower-income households? How about income inequality – is it slowing debt growth?
In this study, it is best to read the introduction and conclusion first – and then look for the supporting evidence.
[click on image to read study]
source: http://www.richmondfed.org/publications/research/working_papers/2014/pdf/wp14-01.pdf
