Attanasio, O.;
Goldberg, P.K.;
Kyriazidou, E.;
(2000)
Credit constraints in the market for consumer durables: evidence from micro data on car loans.
(NBER Working Papers
7694
).
National Bureau of Economic Research: Cambridge, US.
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Abstract
We investigate the empirical significance of borrowing constraints in the market for consumer loans. We set up a theoretical model of consumer loan demand, which in the presence of credit rationing implies restrictions on the elasticities of loan demand with respect to the interest rate and the maturity of the loan. We estimate these elasticities and test the theoretical implications using micro data from the Consumer Expenditure Survey (1984-1995) on auto loan contracts. The econometric specification that we employ accounts for important features of the data: selection, censoring, and simultaneity. Our results suggest that credit constraints are binding for some groups in the population, in particular for young and low-income households.
| Type: | Report |
|---|---|
| Title: | Credit constraints in the market for consumer durables: evidence from micro data on car loans |
| Open access status: | An open access version is available from UCL Discovery |
| Publisher version: | http://www.nber.org/papers/w7694 |
| Language: | English |
| Additional information: | Please also see http://eprints.ucl.ac.uk/15199 |
| Keywords: | D0, E0, G2, H0, L0 |
| UCL classification: | UCL > Provost and Vice Provost Offices > UCL SLASH > Faculty of S&HS > Dept of Economics |
| URI: | https://discovery.ucl.ac.uk/id/eprint/15197 |
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