A Multiplier Approach to Understanding the Macro Implications of Household Finance
---- Acknowledgements -----
We would like to thank Bernard Dumas, Francisco Gomes, Mark Hugget, Urban Jermann, Narayana Kocherlakota, Dirk Krueger, Pete Kyle, Mark Loewenstein, Joseph Ostroy, Nikolai Roussanov, Viktor Tsyrennikov, Stijn Van Nieuwerburgh and Amir Yaron for comments. Andrew Hollenhurst provided excellent research assistance. We would also like to especially thank the editor Kjetil Storesletten and two anonymous referees for their efforts to improve our paper. The views expressed herein are those of the author(s) and do not necessarily reflect the views of the National Bureau of Economic Research.