Abstract

http://ssrn.com/abstract=1303766
 
 

References (65)



 
 

Citations (3)



 


 



Credit Crunch and Household Welfare, the Case of the Korean Financial Crisis


Sung Jin Kang


affiliation not provided to SSRN

Yasuyuki Sawada


University of Tokyo - Faculty of Economics

2007-05-24

Japanese Economic Review, Vol. 59, Issue 4, pp. 438-458, December 2008

Abstract:     
We examine how the credit crunch in Korea in the late 1990s affected household behaviour and welfare. Using 1996-1998 household panel data, we estimate a consumption Euler equation, augmented by endogenous credit constraints. Korean households coped with the negative shocks of the 1997 credit crunch by reducing consumption of luxury items while maintaining food, education and health related expenditures. Our results show that, in 1997-1998, during the crisis, the probability of facing credit constraints and the resulting expected welfare loss from the binding constraints increased significantly, suggesting the gravity of the credit crunch at the household level.

Number of Pages in PDF File: 21

JEL Classification: D91, E21, O16, O53

Accepted Paper Series


Date posted: November 21, 2008  

Suggested Citation

Kang, Sung Jin and Sawada, Yasuyuki, Credit Crunch and Household Welfare, the Case of the Korean Financial Crisis (2007-05-24). Japanese Economic Review, Vol. 59, Issue 4, pp. 438-458, December 2008. Available at SSRN: http://ssrn.com/abstract=1303766 or http://dx.doi.org/10.1111/j.1468-5876.2008.00429.x

Contact Information

Sung Jin Kang (Contact Author)
affiliation not provided to SSRN
No Address Available
Yasuyuki Sawada
University of Tokyo - Faculty of Economics ( email )
7-3-1 Hongo, Bunkyo-ku
Tokyo 113-0033
Japan
Feedback to SSRN


Paper statistics
Abstract Views: 420
Downloads: 1
References:  65
Citations:  3

© 2014 Social Science Electronic Publishing, Inc. All Rights Reserved.  FAQ   Terms of Use   Privacy Policy   Copyright   Contact Us
This page was processed by apollo3 in 0.563 seconds