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This paper develops and tests a new set of stochastic implications of optimal consumption behavior in the presence of borrowing constraints. In a departure from previous models, the theory shows that liquidity constraints imply a distinctive intertemporal relationship between durable and...
Persistent link: https://www.econbiz.de/10013243432
This paper develops and tests a new set of stochastic implications of optimal consumption behavior in the presence of borrowing constraints. In a departure from previous models, the theory shows that liquidity constraints imply a distinctive intertemporal relationship between durable and...
Persistent link: https://www.econbiz.de/10012475080
This paper develops and tests a new set of stochastic implications of optimal consumption behavior in the presence of borrowing constraints. In a departure from previous models, the theory shows that liquidity constraints imply a distinctive intertemporal relationship between durable and...
Persistent link: https://www.econbiz.de/10005714934
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This paper develops and tests the implications of optimal consumption behavior with borrowing constraints. The theory shows that liquidity constraints imply a distinctive intertemporal relationship between durable and nondurable goods consumption. Binding liquidity constraints appear as part of...
Persistent link: https://www.econbiz.de/10005814147
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