Household external finance and consumption

  title={Household external finance and consumption},
  author={Timothy J. Besley and Neil Meads and Paolo Surico},
This paper uses mortgage data to construct a measure of terms on which households access to external …nance, and relates it to consumption at both the aggregate and cohort levels. The Household External Finance (HEF ) index is based on the spread paid by risky borrowers in the mortgage market. There is evidence that the terms of access to external …nance… CONTINUE READING