Since 2014
Credit Rationing and the Permanent Income Hypothesis
Economic Analysis Review
View Archive Info| Field | Value | |
| Title |
Credit Rationing and the Permanent Income Hypothesis
Credit Rationing and the Permanent Income Hypothesis |
|
| Creator |
Madrigal, Vicente
Tan, Tommy Vicent, Daniel Ribeiro da Costa Werlang, Sergio |
|
| Subject |
—
|
|
| Description |
We model endogenous credit rationing and its effects on aggregate consumption behavior. We explain two important empirical paradoxes of the consumption literature. First, it is possible that some configurations of income/consumption streams be such that an outside observer could estimate a marginal propensity to consume greater than one. Second, if one tried to estimate an intertemporal substitution model disregarding credit constraints, it might result in a nonconcave utility function, even when consumers utility functions are concave.
Credit Rationing and the Permanent Income Hypothesis |
|
| Publisher |
Universidad Alberto Hurtado - Facultad de Economía y Negocios
|
|
| Contributor |
—
— |
|
| Date |
2010-03-11
|
|
| Type |
info:eu-repo/semantics/article
info:eu-repo/semantics/publishedVersion — — |
|
| Format |
application/pdf
|
|
| Identifier |
http://www.rae-ear.org/index.php/rae/article/view/208
|
|
| Source |
Revista de Análisis Económico - Economic Analysis Review; Vol 8, No 2 (1993); 19-29
Revista de Análisis Económico – Economic Analysis Review; Vol 8, No 2 (1993); 19-29 0718-8870 0716-5927 |
|
| Language |
eng
|
|
| Relation |
http://www.rae-ear.org/index.php/rae/article/view/208/469
|
|