dc.contributor.author | Holm, Martin Blomhoff | |
dc.date.accessioned | 2018-06-13T08:47:33Z | |
dc.date.available | 2018-06-13T08:47:33Z | |
dc.date.created | 2018-06-08T11:00:59Z | |
dc.date.issued | 2018 | |
dc.identifier.citation | Economics Letters. 2018, 167(June), 40-42. | nb_NO |
dc.identifier.issn | 0165-1765 | |
dc.identifier.issn | 1873-7374 | |
dc.identifier.uri | http://hdl.handle.net/11250/2501386 | |
dc.description.abstract | How 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 households | nb_NO |
dc.language.iso | eng | nb_NO |
dc.publisher | Elsevier | nb_NO |
dc.title | Consumption with liquidity constraints: An analytical characterization | nb_NO |
dc.title.alternative | Consumption with liquidity constraints: An analytical characterization | nb_NO |
dc.type | Journal article | nb_NO |
dc.type | Peer reviewed | nb_NO |
dc.description.version | acceptedVersion | nb_NO |
dc.source.pagenumber | 40-42 | nb_NO |
dc.source.volume | 167 | nb_NO |
dc.source.journal | Economics Letters | nb_NO |
dc.identifier.doi | https://doi.org/10.1016/j.econlet.2018.03.004 | |
dc.identifier.cristin | 1589924 | |
dc.description.localcode | 1, Forfatterversjon | nb_NO |
cristin.unitcode | 158,3,0,0 | |
cristin.unitname | Institutt for samfunnsøkonomi | |
cristin.ispublished | true | |
cristin.fulltext | postprint | |
cristin.qualitycode | 1 | |