Borrowing constraints and consumption behavior in Japan / Midori Wakabayashi, Charles Yuji Horioka.

Author/creator Wakabayashi, Midori, 1974-
Other author Horioka, Charles.
Other author National Bureau of Economic Research.
Format Electronic
Publication InfoCambridge, MA : National Bureau of Economic Research,
Supplemental ContentFull text available from NBER Working Papers
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SeriesNBER working paper series ; working paper 11560
Working paper series (National Bureau of Economic Research : Online) ; working paper no. 11560. UNAUTHORIZED
Summary "In this paper, we use Japanese micro data to examine what characteristics borrowing-constrained households have and whether borrowing constraints have an important influence on household consumption behavior. We identify borrowing-constrained households using three different indicators, some of which are unique to our data source, and find that the characteristics of households that are likely to be borrowing-constrained differ depending on which of the three indicators we use. We also find that changes in current income have a positive and significant impact on changes in consumption in the case of households that are likely to be borrowing-constrained but not in the case of households that are unlikely to be borrowing-constrained. This result suggests that borrowing constraints have an important influence on household consumption behavior and that the presence of borrowing constraints is one explanation for why the life cycle-permanent income hypothesis does not hold in the real world"--National Bureau of Economic Research web site.
General noteTitle from PDF file as viewed on 8/31/2005.
Bibliography noteIncludes bibliographical references.
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Technical detailsMode of access: World Wide Web
Genre/formElectronic books.
LCCN 2005619192

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