Johannesen in the American Economic Review

Niels Johannesen publishes article in the American Economic Review about how the financial crisis spread to the real economy and the role of household behavior in this transition.

They investigate whether the most recent financial crisis was transmitted to the household sector through a reduction in the credit supply. The tightening of credit by banks in financial distress is one among several possible explanations why households slashed consumption in the aftermath of the financial crisis.

You can read the full article here: Thais Lærkholm Jensen and Niels Johannesen, 2017. “The Consumption Effects of the 2007-2008 Financial Crisis: Evidence from Households in Denmark”. American Economic Review 107(11), 3386-3414.

Or you can read the authors condensed introduction to the results at our CEBI research site.