Credit Constraints in the Market for Consumer Durables: Evidence from Micro Data on Car Loans

We investigate the significance of borrowing constraints in the market for consumer loans. Using data from the Consumer Expenditure Survey on auto loan contracts we estimate the elasticities of loan demand with respect to interest rate and maturity. We find that, with the exception of high income ho...

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Bibliographic details

Volume:	49
Main Author:	Orazio P. Attanasio Pinelopi Koujianou Goldberg Ekaterini Kyriazidou
Format:	Journal Article
Language:	English
Zielgruppe:	Academic
Place of publication:	Malden, USA Blackwell Publishing on behalf of the Economics Department of the University of Pennsylvania and the Osaka University Institute of Social and Economic Research Association 01.05.2008 Blackwell Publishing Inc WILEY-BLACKWELL Wiley Subscription Services, Inc
published in:	International economic review (Philadelphia) Vol. 49; no. 2; pp. 401 - 436
Data of publication:	20080501
ISSN:	0020-6598 1468-2354
EISSN:	1468-2354
Discipline:	Economics
Bibliography:	We would like to thank Costas Azariadis, Richard Blundell, Bo Honoré, Tom MaCurdy, Costas Meghir, Derek Neal, Josef Perktold, Frank Vella, Frank Wolak, and several seminar participants in the United States and Europe for useful conversations and suggestions. The current version has benefited substantially from the detailed comments of the editor and three anonymous referees. Kyriazidou and Goldberg thank the Sloan Foundation Faculty Research Fellowship Program for financial support. In addition, Goldberg thanks the NSF (Grant SBR‐9731979 through the NBER). Eduardo Fajnzylber provided excellent research assistance. Jeremy Nalewaik provided invaluable help in using the NBER tax simulation program to compute marginal tax rates. The usual disclaimer applies. Please address correspondence to: Orazio Attanasio, Department of Economics, University College London, Glower Street, London WC1E 7AE, U.K. E‐mail Manuscript June 2005. Final version accepted in April 2007. o.attanasio@ucl.ac.uk Phone: +44 207 679 5880. .
Subjects:	Demand loans Automobile loans Finance Consumer loans Liquidity Elasticity of demand Loan rates Financial instruments Automobiles Interest rates Economics Business & Economics Social Sciences SELECTION INCOME PANEL DATA CONSUMPTION LIQUIDITY CONSTRAINTS
Online Access:	Fulltext
Database:	Social Sciences Citation Index Web of Science - Social Sciences Citation Index - 2008 Web of Knowledge Web of Science CrossRef Academic OneFile (A&I only) Database information Databases - DBIS