Estimates of the demand for US consumer borrowings
AbstractThis paper explains non-mortgage borrowing by U.S. households with demand-side factors, viz. disposable income, wealth and interest rate. The life cycle hypothesis and a standard two period consumption model are the basis of our theoretical model. We find with the cointegration techniques that current disposable income, past wealth, and interest rate explain consumer borrowing over 50 years.
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Bibliographic InfoPaper provided by University Library of Munich, Germany in its series MPRA Paper with number 32562.
Date of creation: 08 Jul 2011
Date of revision:
consumer borrowing; disposable income; wealth; interest rates; US economy;
Find related papers by JEL classification:
- D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
- O51 - Economic Development, Technological Change, and Growth - - Economywide Country Studies - - - U.S.; Canada
- C22 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models &bull Diffusion Processes
This paper has been announced in the following NEP Reports:
- NEP-ALL-2011-08-15 (All new papers)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Sydney Ludvigson & Charles Steindel, 1999.
"How important is the stock market effect on consumption?,"
Economic Policy Review, Federal Reserve Bank of New York,
Federal Reserve Bank of New York, issue Jul, pages 29-51.
- Sydney Ludvigson & Charles Steindel, 1998. "How important is the stock market effect on consumption?," Research Paper, Federal Reserve Bank of New York 9821, Federal Reserve Bank of New York.
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