Bhattacharya, Rudrani; Patnaik, Ila - International Monetary Fund (IMF) - 2013
How does access to credit impact consumption volatility? Theory and evidence from advanced economies suggests that … fraction of them are credit constrained. Unconstrained households can respond to shocks to trend growth by raising current … consumption volatility. Calibration of the model for pre and post financial reform in India provides support for the model's key …