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The Nature of Credit Constraints and Human Capital

  • Lance J. Lochner

    (University of Western Ontario; Alexander Monge-Naranjo, Penn State University)

In contrast, the standard exogenous constraint model cannot simultaneously explain observations (i) and (ii) under standard assumptions about preferences; it is also silent on the rise in private lending. By incorporating both public and private lending, our framework offers new insights regarding the interaction of government and private student lending as well as the responsiveness of private student credit to economic and policy changes.

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Paper provided by Society for Economic Dynamics in its series 2009 Meeting Papers with number 745.

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Date of creation: 2009
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Handle: RePEc:red:sed009:745
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  9. Kehoe, Timothy J & Levine, David K, 1993. "Debt-Constrained Asset Markets," Review of Economic Studies, Wiley Blackwell, vol. 60(4), pages 865-88, October.
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