Credit Constraints and Durable Consumption
22 Pages Posted: 19 Oct 2010
Date Written: September 20, 2010
Abstract
I find quantitative evidence of a significant effect for credit constraints on durable consumption during a post-deregulation consumer spending spree. The effect varied markedly across age and educational groups. Young households with low levels of education displayed high sensitivity to credit conditions. In contrast, older highly educated households were relatively immune to credit market developments.
Keywords: Durable Consumption, Credit Constraints, Stochastic Frontier Analysis
JEL Classification: D12, D91, E21
Suggested Citation: Suggested Citation
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