@TechReport{iza:izadps:dp9409,
            	author={Hintermaier, Thomas and Koeniger, Winfried},
            	title={Household Debt and Crises of Confidence},
            	year={2015},
	month={Oct},
            	institution={Institute of Labor Economics (IZA)},
            	address={Bonn},
            	type={IZA Discussion Paper},
            	number={9409},
            	url={https://www.iza.org/publications/dp9409},
	abstract={We show that the size of collateralized household debt determines an economy's vulnerability to crises of confidence. The house price feeds back on itself by contributing to a liquidity effect, which operates through the value of housing in a collateral constraint. Over a specific range of debt levels this liquidity feedback effect is strong enough to give rise to multiplicity of house prices. In a dynamic setup, we conceptualize confidence as a realization of rationally entertainable belief-weightings of multiple future prices. This delivers debt-level-dependent bounds on the extent to which confidence may drive house prices and aggregate consumption.},
	keywords={multiple equilibria;collateral constraints;consumer confidence;household debt},
            }