The Effects of Financial Deregulation on Consumption

38 Pages Posted: 15 Feb 2006

See all articles by Tamim Bayoumi

Tamim Bayoumi

International Monetary Fund (IMF); Centre for Economic Policy Research (CEPR)

Pinelopi Koujianou

affiliation not provided to SSRN

Date Written: October 26, 1989

Abstract

This paper examines whether financial deregulation in the 1980s has reduced the importance of liquidity constraints in consumption patterns. Data for six industrialized countries are used to estimate a simple model incorporating liquidity constraints and forward looking behavior. It is concluded that the importance of liquidity constraints fell between the 1970s and the 1980s. This implies that forward looking models of consumer behavior fit the data better in the recent period.

JEL Classification: 921

Suggested Citation

Bayoumi, Tamim and Koujianou, Pinelopi, The Effects of Financial Deregulation on Consumption (October 26, 1989). IMF Working Paper, Vol. , pp. 1-38, 1989. Available at SSRN: https://ssrn.com/abstract=885038

Tamim Bayoumi (Contact Author)

International Monetary Fund (IMF) ( email )

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Washington, DC 20431
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202-623-6333 (Phone)
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Centre for Economic Policy Research (CEPR)

London
United Kingdom

Pinelopi Koujianou

affiliation not provided to SSRN

No Address Available

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