The household sector consists of a continuum of households . A fraction of all households are savers and indexed by s. households are credit constrained (debtors) and indexed by c and there is a fractionof equity owners. The period utility functions have identical functional forms for all household types6 and are specified as a nested constant elasticity of substitution (CES) aggregate of consumption () and housing services () and separable in deposits and leisure (). We follow Van den Heuvel (2008) in adding deposits to the utility function, this simplifies modelling of portfolio decisions of households. We also allow for habit persistence in consumption. For each household type the temporal utility is given by
. 
of all households are savers 
households are credit constrained (debtors) and indexed by c and there is a fraction 
of 
) and housing services (
) 
and leisure (
). We follow Van den Heuvel (2008) in adding deposits to the utility function, this simplifies modelling of portfolio decisions of households. We also allow for habit persistence in consumption. 
the temporal utility is given by