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In Search of Intergenerational Credit Constraints Among Canadian Men: Quantile Versus Mean Regression Tests for Binding Credit Constraints Author info | Abstract | Publisher info | Download info | Related research | Statistics Grawe, Nathan D.
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Several recent papers have cited non-linearities in the relationship between incomes of parents and their children as evidence of important intergenerational credit constraints. This paper argues that any pattern in the conditional expectation function can be justified by a properly constructed story with credit constraints. This raises questions about the validity of the approach. Quantile regressions provide an alternative test. Using data from Canadian tax files, this paper finds results contrary to the credit constraints hypothesis; the non-linearities in the regression function are driven by the low-ability (unconstrained) sons rather than high-ability (presumably constrained) sons.
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Paper provided by Statistics Canada, Analytical Studies Branch in its series Analytical Studies Branch Research Paper Series with number
2001158e.
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Date of creation: 30 Jan 2001Date of revision:
Handle: RePEc:stc:stcp3e:2001158eContact details of provider: Postal: Tunney's Pasture, Ottawa, Ontario, K1A 0T6 Web page: http://www.statcan.ca More information through EDIRC
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Keywords: Labour Income pensions spending and wealth Wages salaries and other earnings Household family and personal income Other versions of this item:
References listed on IDEAS 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.: Grawe, Nathan D., 2003.
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references Cited by : (explanations , 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.)
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Other versions: Corak, Miles, 2001.
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2001171f, Statistics Canada, Direction des études analytiques.
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