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dc.contributor.authorHolm, Martin Blomhoff
dc.date.accessioned2018-06-13T08:47:33Z
dc.date.available2018-06-13T08:47:33Z
dc.date.created2018-06-08T11:00:59Z
dc.date.issued2018
dc.identifier.citationEconomics Letters. 2018, 167(June), 40-42.nb_NO
dc.identifier.issn0165-1765
dc.identifier.issn1873-7374
dc.identifier.urihttp://hdl.handle.net/11250/2501386
dc.description.abstractHow do liquidity constraints affect households? This is a well-researched subject with remarkably few theoretical results. This paper bridges this gap by providing a closed form expression for consumption with liquidity constraints for a wide class of utility functions (HARA). Using this expression, I prove that the consumption function is strictly concave in wealth if a relevant liquidity constraint exists. Moreover, households respond to a tightening of the liquidity constraint by reducing consumption, becoming more sensitive to wealth changes, and having a “more” concave consumption function in wealth. These results thus provide theoretical underpinnings for how contractions in credit supply affect householdsnb_NO
dc.language.isoengnb_NO
dc.publisherElseviernb_NO
dc.titleConsumption with liquidity constraints: An analytical characterizationnb_NO
dc.title.alternativeConsumption with liquidity constraints: An analytical characterizationnb_NO
dc.typeJournal articlenb_NO
dc.typePeer reviewednb_NO
dc.description.versionacceptedVersionnb_NO
dc.source.pagenumber40-42nb_NO
dc.source.volume167nb_NO
dc.source.journalEconomics Lettersnb_NO
dc.identifier.doihttps://doi.org/10.1016/j.econlet.2018.03.004
dc.identifier.cristin1589924
dc.description.localcode1, Forfatterversjonnb_NO
cristin.unitcode158,3,0,0
cristin.unitnameInstitutt for samfunnsøkonomi
cristin.ispublishedtrue
cristin.fulltextpostprint
cristin.qualitycode1


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