Households commonly utilize strategies that provide long-term savings on everyday purchases in exchange for an increase in their short-term expenditures. For example, they buy larger packages of non-perishable goods to take advantage of bulk discounts, and accelerate their purchases to take...

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...

We propose a life-cycle model of the housing market with a property ladder and a credit constraint. We focus on equilibria which replicate the facts that credit constraints delay some households' first home purchase and force other households to buy a home smaller than they would like. The model...

This paper presents a dynamic theory of housing market fluctuations. It develops a life-cycle model where households are heterogeneous with respect to income and preferences, and mortgage lending is restricted by a down-payment requirement. The market interaction of young credit-constrained...

This study investigates the patterns of consumptions among the classes of household. this class is characterized of two types of financial constraint households and non financial constraint households, in particular, according to the discussions of Zelde (1989), Kaplan et al. (2014), and Aguiar...