This paper analyzes a unique dataset, which contains results of a large-scale experiment in the credit card market. Two …

relaxed as suggested by data. With an increase in available credit, the consumer can easily spread out negative income shocks … by credit card borrowing or consumer loans. As a result, consumers under relaxed borrowing constraints have lower MPCs …

The financial crisis in 1997 caused serious deterioration of the Korean economy. We examined the credit crunch in Korea … of a consumption Euler equation, which is augmented by endogenous credit constraints. Several empirical findings emerged ….e., the necessary condition of the life-cycle permanent income hypothesis, does not hold because of binding credit constraints …

This paper presents a participation game experiment to study the impact of uncertainty and costly political … participation on the incidence of reform. Fernandez and Rodrik (1991) show that uncertainty about who will ultimately gain or lose … policy outcome given the probabilities of participation by others. Our experimental findings show that uncertainty reduces …

, have heavily relied on bank lending as their funding measures that the effect of credit crunch to the industry is examined …