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Credit Constraints in the Market for Consumer Durables: Evidence from Micro Data on Car Loans / Orazio Attanasio, Pinelopi K. Goldberg, Ekaterini Kyriazidou.

NBER Working papers Available online

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Format:
Book
Author/Creator:
Attanasio, Orazio.
Contributor:
National Bureau of Economic Research.
Goldberg, Pinelopi K.
Kyriazidou, Ekaterini.
Series:
Working Paper Series (National Bureau of Economic Research) no. w7694.
NBER working paper series no. w7694
Language:
English
Physical Description:
1 online resource: illustrations (black and white);
Other Title:
Credit Constraints in the Market for Consumer Durables
Place of Publication:
Cambridge, Mass. National Bureau of Economic Research 2000.
Summary:
We investigate the empirical significance of borrowing constraints in the market for consumer loans. We set up a theoretical model of consumer loan demand, which in the presence of credit rationing implies restrictions on the elasticities of loan demand with respect to the interest rate and the maturity of the loan. We estimate these elasticities and test the theoretical implications using micro data from the Consumer Expenditure Survey (1984-1995) on auto loan contracts. The econometric specification that we employ accounts for important features of the data: selection, censoring, and simultaneity. Our results suggest that credit constraints are binding for some groups in the population, in particular for young and low-income households.
Notes:
Print version record
May 2000.

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