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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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File URL: https://economicdynamics.org/meetpapers/2009/paper_745.pdf
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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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Society for Economic Dynamics Marina Azzimonti Department of Economics Stonybrook University 10 Nicolls Road Stonybrook NY 11790 USA

Web page: http://www.EconomicDynamics.org/
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