Liquidity constraints with endogenous income.

This article examines liquidity constraints within the household's intertemporal model with nonseparable consumption and leisure. The model includes wage income in the minimum wealth constraint. We derive an estimable equation for employed households that holds whether or not the family is credit co...

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Publicado en:Economic Inquiry Vol. 37; no. 4; pp. 692 - 706
Autores principales: Zhao, Yucong, Dutkowsky, Donald H., Dunsky, Robert M.
Formato: Artículo
Publicado: Wiley-Blackwell October 1999
Materias:
Acceso en línea:Ver este registro en EBSCOhost
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        atl: Liquidity constraints with endogenous income.
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        au:
          Zhao, Yucong
          Dutkowsky, Donald H.
          Dunsky, Robert M.
      su:
        Liquidity (Economics)
        Households & economics
        Consumption (Economics)
        United States
      sug:
        subj:
          United States
          Liquidity (Economics)
          Households & economics
          Consumption (Economics)
      ab: This article examines liquidity constraints within the household's intertemporal model with nonseparable consumption and leisure. The model includes wage income in the minimum wealth constraint. We derive an estimable equation for employed households that holds whether or not the family is credit constrained. The formulation enables direct testing for liquidity constraints. Empirical findings using the Panel Study of Income Dynamics strongly support the existence of debt constraints. Credit constrained households have significantly lower levels of consumption, disposable income, saving, and wage rates, a higher average propensity to consume, and smaller labor hours for the spouse but not the head. (JEL D91, J22) Reprinted by permission of the publisher.
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    language: English
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