Consumption and credit: A model of time-varying liquidity constraints

Review of Economics and Statistics

Volumn 81, Issue 3, 1999, Pages 434-447

  Ludvigson, Sydney ^a  

^a NONE

Author keywords

[No Author keywords available]

Indexed keywords

EID: 0033422227     PISSN: 00346535     EISSN: None     Source Type: Journal    
DOI: 10.1162/003465399558364     Document Type: Article

References (31)

1. Attanasio, O. P., and G. Weber, "Consumption Growth, the Interest Rate, and Aggregation," Review of Economic Studies 60 (1993), 631-649.
2. Attanasio, O. P., J. Banks, C. Meghir, G. Weber, "Humps and Bumps in Life Time Consumption," NBER working paper no. 5350 (November, 1995).
3. Bacchetta, Phillippe, and Stefan Gerlach, "Consumption and Credit Constraints: International Evidence," Journal of Monetary Economics (forthcoming).
4. Beaudry, Paul, and Eric van Wincoop, "The Intertemporal Elasticity of Substitution: An Exploration Using a U.S. Panel of State Data," Economica 63, No. 251 (1996).
5. Bernanke, Ben, and Mark Gertler, "Agency Costs, Net Worth, and Business Fluctuations," American Economic Review LXXIX ( 1989), 14-31.
6. Bernanke, Ben, Mark Gertler, and Simon Gilchrist, "The Financial Accelerator and the Flight to Quality," Review of Economics and Statistics, 78(1) (1996), 1-15.
7. Boldrin, M., L. J. Christiano, and J. Fisher, "Asset Pricing Lessons for Modeling Business Cycles," NBER working paper no. 5262 (1995).
8. Campbell, John Y., and Greg Mankiw, "Consumption, Income and Interest Rates: Reinterpreting the Time Series Evidence," in O. Blanchard and S. Fischer (eds.), NBER Macroeconomics Annual 1989 (Cambridge, MA: MIT press, 1989).
9. _ "Permanent Income, Current Income and Consumption," Journal of Business and Economic Statistics 8 (1990), 269-279.
10. _ "The Response of Consumption to Income, A Cross-Country Investigation," European Economic Review 35 (1991), 723-767.
11. Carroll, Christopher, "Buffer Stock Saving and the Permanent Income Hypothesis," Quarterly Journal of Economics 112(1) (1997), 1-56.
12. Carroll, Christopher, and Miles Kimball, "On the Concavity of the Consumption Function," Econometrica LXIV (1996), 981-922.
13. Carroll, Christopher, Jeffrey Fuhrer, and David Wilcox, "Does Consumer Sentiment Forecast Household Spending? If So, Why?" American Economic Review, 84(5) (1994), 1397-1408.
14. Christiano, Lawrence J., M. Eichenbaum, and M. David, "The Permanent Income Hypothesis Revisited," Econometrica 59(2) (1991), 397-423.
15. Deaton, Angus, "Saving and Liquidity Constraints," Econometrica 59, No. 5 (1991), 1221-1248.
16. _ Understanding Consumption, (Oxford University Press, 1992).
17. Deaton, Angus, and Guy Laroque, "On the Behavior of Commodity Prices," Review of Economic Studies 59 (1992), 1-23.
18. Fazzari, Steven M., Glenn Hubbard, and Bruce Petersen, "Financing Constraints and Corporate Investment," Brookings Papers on Economic Activity 1:1988 (1988), 141-206.
19. Flavin, Marjorie, "The Adjustment of Consumption to Changing Expectations About Future Income," Journal of Political Economy 89 (1981), 974-1009.
20. Hall, Robert E., "Stochastic Implications of the Life Cycle-Permanent Income Hypothesis: Theory and Evidence," Journal of Political Economy 86 (1978), 971-987.
21. Hall, Robert E., and Frederic S. Mishkin, "The Sensitivity of Consumption to Transitory Income: Estimates from Panel Data on Households," Econometrica 50(2) (1982), 461-81.
22. Hansen, Lars P., and Kenneth J. Singleton, "Stochastic Consumption, Risk Aversion, and the Temporal behavior of Asset Returns," Journal of Political Economy 91 (1983), 249-265.
23. Jappelli, Tullio, "Who is Credit Constrained in the U.S. Economy?" Quarterly Journal of Economics 105 (February, 1990), 219-234.
24. Ludvigson, Sydney C. "The Mechanism of Monetary Transmission to Demand: Evidence from the Market for Automobile Credit," Journal of Money, Credit, and Banking 30, no. 3 (August, 1998, Part I).
25. MaCurdy, T. E., "The Use of Time Series Processes to Model the Error Structure of Earnings in Longitudinal Data Analysis," Journal of Econometrics 18 (1982), 83-114.
26. Mankiw, N. Gregory, "The Permanent Income Hypothesis and the Real Interest Rate," Economic Letters 7 (1981), 307-311.
27. Pischke, Jörn-Steffen, "Individual Income, Incomplete Information and Aggregate Consumption," Econometrica 63(4) (1995), 805-840.
28. Shea, John, "Instrument Relevance in Linear Models: A Simple Measure," Unpublished manuscript, University of Wisconsin-Madison (1993).
29. Staten, Michael E., and Robert W. Johnson, Household Credit Data Book (West Lafayette, Indiana: Credit Research Center Purdue University, 1995).
30. Zeldes, Steve, "Consumption and Liquidity Constraints: An Empirical Investigation," Journal of Political Economy 97 (1989a), 305-346.
31. _ "Optimal Consumption with Stochastic Income: Deviations from Certainty Equivalence," Quarterly Journal of Economics CIV (1989b), 275-298.