Using Consumer Finance Monthly national survey, we demonstrate that credit unions in the US did little to help consumers obtain home equity lines of credit (HELOC) during the recent financial crisis. Our results hold after including a two-stage regression structure using the availability of...

This paper shows that private information may be crucial in explaining the relationship between liquidity, investment and economic fluctuations. First, it defines liquidity in a way that is clearly connected to investment and output. Second, it models economies where privately informed...

I analyze the equilibrium level of liquidity and its relevance for the allocation of credit, when the notion of liquidity is related to private information. The general equilibrium analysis yields the following main implications: firstly, it provides an explanation of procyclical liquidity even...