SWITCHING REGRESSION ESTIMATES OF THE INTERGENERATIONAL PERSISTENCE OF CONSUMPTION.
The influential economic theory of intergenerational transfers predicts a negative connection between credit constraints and intergenerational mobility of consumption. Existing work has used bequest receipt to signal a parent's access to credit markets when investing in his children's human capital....
| Publicado en: | Economic Inquiry Vol. 52; no. 4; pp. 1503 - 1525 |
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| Formato: | Artículo |
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Wiley-Blackwell
Oct2014
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| Acceso en línea: | Ver este registro en EBSCOhost |
| fields | @attributes: recordID: 1 pdfLink: plink: https://search.ebscohost.com/login.aspx?direct=true&db=ssf&AN=97580876&site=ehost-live header: @attributes: shortDbName: ssf uiTerm: 97580876 longDbName: Social Sciences Full Text (H.W. Wilson) uiTag: AN controlInfo: bkinfo: jinfo: jid: 00952583 EIQ jtl: Economic Inquiry issn: 00952583 maglogo: Y pubinfo: dt: Oct2014 vid: 52 iid: 4 pid: 480 pub: Wiley-Blackwell artinfo: ui: 97580876 10.1111/ecin.12094 ppf: 1503 ppct: 22 formats: fmt: – @attributes: type: T – @attributes: type: P size: 710KB tig: atl: SWITCHING REGRESSION ESTIMATES OF THE INTERGENERATIONAL PERSISTENCE OF CONSUMPTION. aug: au: GUO, SHENG affil: Assistant Professor, Department of Economics, Florida International University, 11200 SW 8th Street, DM 318A, Miami, FL 33199 su: United States Intergenerational relations Human capital Credit Economic mobility Consumption (Economics) Economic status Inheritance & succession Economics sug: subj: Intergenerational relations Human capital Credit Economic mobility Consumption (Economics) Economic status Inheritance & succession Economics United States Other Activities Related to Credit Intermediation ab: The influential economic theory of intergenerational transfers predicts a negative connection between credit constraints and intergenerational mobility of consumption. Existing work has used bequest receipt to signal a parent's access to credit markets when investing in his children's human capital. However, measurement error in bequest receipt generates misclassification error and, in turn, attenuation bias. Employing switching regressions with imperfect sample separation to deal with this error, we show that the intergenerational persistence of consumption in the United States for credit constrained families is much higher than that for unconstrained families, contrary to what the theory implies. This means that children from constrained families are more likely to have consumption levels similar to those of their parents than children from unconstrained families. Our results are robust to the choice of bequest variables and other predictive variables in the switching equation. ( JEL C13, D12, E21, J62) pubtype: Academic Journal doctype: Article src: R language: English refInfo: copyright: @attributes: flag: N holdings: @attributes: islocal: N |
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