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Consumption and Government-Budget Finance in a High-Deficit Economy
Leiderman, Leonardo - 1986
This paper characterizes empirically how government budget variables, such as spending, taxes, and deficits, affected private-sector consumption in the high-budget-deficit economy of Israel during the first half of the 1980s. The paper develops and estimates an intertemporal optimizing model of...
Persistent link: https://www.econbiz.de/10012477038
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How Do House Prices Affect Consumption? Evidence From Micro Data
Campbell, John Y. - 2005
Housing is a major component of wealth. Since house prices fluctuate considerably over time, it is important to understand how these fluctuations affect households' consumption decisions. Rising house prices may stimulate consumption by increasing households' perceived wealth, or by relaxing...
Persistent link: https://www.econbiz.de/10012467144
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Financial Regulation in General Equilibrium
Goodhart, Charles A.E. - 2012
This paper explores how different types of financial regulation could combat many of the phenomena that were observed in the financial crisis of 2007 to 2009. The primary contribution is the introduction of a model that includes both a banking system and a "shadow banking system" that each help...
Persistent link: https://www.econbiz.de/10012460749
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Housing Wealth and Consumption : The Role of Heterogeneous Credit Constraints
Aruoba, S. Borağan; Elul, Ronel; Kalemli-Ozcan, Sebnem - National Bureau of Economic Research - 2022
We quantify the role of heterogeneity in households' financial constraints in explaining the large decline in consumption between 2006 and 2009. Using household-level data, we show that in addition to a direct effect of changes in house prices, there are sizable indirect effects from general...
Persistent link: https://www.econbiz.de/10013435153
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Savings and the Terms of Trade Under Borrowing Constraints
Agenor, Pierre-Richard - 2000
This paper examines the extent to which permanent terms-of-trade shocks have an asymmetric effect on private savings … in bad states of nature, savings rates will respond asymmetrically to favorable movements in the permanent component of … standard determinants of private savings. The results, based on panel data for non-oil commodity exporters of sub …
Persistent link: https://www.econbiz.de/10012471007
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Savings Constraints and Microenterprise Development : Evidence from a Field Experiment in Kenya
Dupas, Pascaline - 2009
Does limited access to formal savings services impede business growth in poor countries? To shed light on this question … expenditures. We see no impact for bicycle-taxi drivers. These results imply significant barriers to savings and investment for …
Persistent link: https://www.econbiz.de/10012463955
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Liquidity Constraints and Precautionary Saving
Carroll, Christopher D. - 2001
Economists working with numerical solutions to the optimal consumption/saving problem under uncertainty have long known that there are quantitatively important interactions between liquidity constraints and precautionary saving behavior. This paper provides the analytical basis for those...
Persistent link: https://www.econbiz.de/10012470222
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A Theory of the Consumption Function, With and Without Liquidity Constraints (Expanded Version)
Carroll, Christopher D. - 2001
This paper argues that the modern stochastic consumption model, in which impatient consumers face uninsurable labor income risk, matches Milton Friedman's (1957) original description of the Permanent Income Hypothesis much better than the perfect foresight or certainty equivalent models did. The...
Persistent link: https://www.econbiz.de/10012470333
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Saving and Liquidity Constraints
Deaton, Angus - 1989
This paper is concerned with the theory of saving when consumers are not permitted to borrow, and with the ability of such a theory to account for some of the stylized facts of saving behavior. When consumers are relatively impatient, and when labor income is independently and identically...
Persistent link: https://www.econbiz.de/10012475841
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Credit Crises, Precautionary Savings, and the Liquidity Trap
Guerrieri, Veronica - 2011
their precautionary savings. This depresses interest rates, especially in the short run, and generates an output drop, even …
Persistent link: https://www.econbiz.de/10012461074