Intertemporal consumption, durables and liquidity constraints: a cohort analysis
We provide a theoretical framework to analyse the response of life time maximizing consumers to intertemporal prices of non-durable goods and durable goods when the borrowing limit depends on the market value of the stock of durables owned by the consumer. We use pseudo panel data on purchases of no...
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| Format: | Journal article |
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1997
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| _version_ | 1826279808586219520 |
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| author | Devereux, M Alessie, R Weber, G |
| author_facet | Devereux, M Alessie, R Weber, G |
| author_sort | Devereux, M |
| collection | OXFORD |
| description | We provide a theoretical framework to analyse the response of life time maximizing consumers to intertemporal prices of non-durable goods and durable goods when the borrowing limit depends on the market value of the stock of durables owned by the consumer. We use pseudo panel data on purchases of non-durables and durable goods (cars) and demographic characteristics from the UK Family Expenditure Survey, as well as estimates of the durable stock constructed using the UK National Travel Survey, to estimate the equations derived in the first part of the paper. We evaluate the shadow prices of these restrictions, which were significantly positive for younger consumers in the mid-seventies and immediately prior to the 1982 financial liberalisation. |
| first_indexed | 2024-03-07T00:04:19Z |
| format | Journal article |
| id | oxford-uuid:7704aecb-e30c-46d0-91fc-35ec9002111f |
| institution | University of Oxford |
| last_indexed | 2024-03-07T00:04:19Z |
| publishDate | 1997 |
| record_format | dspace |
| spelling | oxford-uuid:7704aecb-e30c-46d0-91fc-35ec9002111f2022-03-26T20:20:21ZIntertemporal consumption, durables and liquidity constraints: a cohort analysisJournal articlehttp://purl.org/coar/resource_type/c_dcae04bcuuid:7704aecb-e30c-46d0-91fc-35ec9002111fSaïd Business School - Eureka1997Devereux, MAlessie, RWeber, GWe provide a theoretical framework to analyse the response of life time maximizing consumers to intertemporal prices of non-durable goods and durable goods when the borrowing limit depends on the market value of the stock of durables owned by the consumer. We use pseudo panel data on purchases of non-durables and durable goods (cars) and demographic characteristics from the UK Family Expenditure Survey, as well as estimates of the durable stock constructed using the UK National Travel Survey, to estimate the equations derived in the first part of the paper. We evaluate the shadow prices of these restrictions, which were significantly positive for younger consumers in the mid-seventies and immediately prior to the 1982 financial liberalisation. |
| spellingShingle | Devereux, M Alessie, R Weber, G Intertemporal consumption, durables and liquidity constraints: a cohort analysis |
| title | Intertemporal consumption, durables and liquidity constraints: a cohort analysis |
| title_full | Intertemporal consumption, durables and liquidity constraints: a cohort analysis |
| title_fullStr | Intertemporal consumption, durables and liquidity constraints: a cohort analysis |
| title_full_unstemmed | Intertemporal consumption, durables and liquidity constraints: a cohort analysis |
| title_short | Intertemporal consumption, durables and liquidity constraints: a cohort analysis |
| title_sort | intertemporal consumption durables and liquidity constraints a cohort analysis |
| work_keys_str_mv | AT devereuxm intertemporalconsumptiondurablesandliquidityconstraintsacohortanalysis AT alessier intertemporalconsumptiondurablesandliquidityconstraintsacohortanalysis AT weberg intertemporalconsumptiondurablesandliquidityconstraintsacohortanalysis |