Household heterogeneity and consumption dynamics in the presence of borrowing and liquidity constraints
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DOI: 10.1080/13504851.2018.1486974
Abstract: ABSTRACT I study the effects of borrowing and liquidity constraints on the response of consumption to anticipated income changes. Using the PSID over 1999–2013, I find that the well-documented strong excess sensitivity of consumption to… read more here.
Keywords: heterogeneity; borrowing liquidity; liquidity constraints; consumption ... See more keywords