Estimating Credit Constraints among US Households
Households are constrained if they want to borrow, but banks restrict their lending. This paper separately identifies (using appropriate exclusion restrictions) the demand for debt, and the maximum amount agents can borrow when it is unknown which consumers are constrained. Using data from the CEX, it estimates that between 26 percent and 31 percent of households are constrained: and that poorly educated, ethnic minority, low income, men, and (among the educated) older households are less often constrained. On average, households would like to borrow up to $4,000 dollars more. But it does not test whether constraints are never binding
|Date of creation:||2003|
|Contact details of provider:|| Postal: Badia Fiesolana, Via dei Roccettini, 9, 50014 San Domenico di Fiesole (FI) Italy|
Web page: http://www.eui.eu/ECO/
More information through EDIRC
When requesting a correction, please mention this item's handle: RePEc:eui:euiwps:eco2003/14. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Anne Banks)
If references are entirely missing, you can add them using this form.