Chapter 4

Household debt and recession in Brazil∗

Gabriel Garber1, Atif Mian2, Jacopo Ponticelli3, and Amir Sufi4     1Research Department, Central Bank of Brazil     2Princeton University, United States     3Northwestern University, United States     4University of Chicago Booth School of Business, United States

Abstract

Brazil experienced one of the most severe recessions in its history from 2014 to 2016. Following a pattern shown for previous economic downturns in other countries, the Brazilian recession was preceded by a substantial increase in household debt from 2003 to 2014. This study utilizes a novel individual level data set on household borrowing in order to provide details of the household debt boom. The data set allows for a decomposition ...

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