Intertemporal consumption and credit constraints: Does consumption respond to an exogenous shock to credit?

Research output: Contribution to journal › Journal article › Research › peer-review

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Intertemporal consumption and credit constraints : Does consumption respond to an exogenous shock to credit? / Leth-Petersen, Søren.

In: American Economic Review (Print Edition), Vol. 100, No. 3, 2010, p. 1080-1103.

Research output: Contribution to journal › Journal article › Research › peer-review

Harvard

Leth-Petersen, S 2010, 'Intertemporal consumption and credit constraints: Does consumption respond to an exogenous shock to credit?', American Economic Review (Print Edition), vol. 100, no. 3, pp. 1080-1103. https://doi.org/10.1257/aer.100.3.1080

APA

Leth-Petersen, S. (2010). Intertemporal consumption and credit constraints: Does consumption respond to an exogenous shock to credit? American Economic Review (Print Edition), 100(3), 1080-1103. https://doi.org/10.1257/aer.100.3.1080

Vancouver

Leth-Petersen S. Intertemporal consumption and credit constraints: Does consumption respond to an exogenous shock to credit? American Economic Review (Print Edition). 2010;100(3):1080-1103. https://doi.org/10.1257/aer.100.3.1080

Author

Leth-Petersen, Søren. / Intertemporal consumption and credit constraints : Does consumption respond to an exogenous shock to credit?. In: American Economic Review (Print Edition). 2010 ; Vol. 100, No. 3. pp. 1080-1103.

Bibtex

@article{90ebbd90b6a211df825b000ea68e967b,
title = "Intertemporal consumption and credit constraints: Does consumption respond to an exogenous shock to credit?",
abstract = "There is continuing controversy over the importance of credit constraints. This paper investigates whether total household expenditure and debt is affected by an exogenous increase in access to credit provided by a credit market reform that enabled Danish house owners to use housing equity as collateral for consumption loans. We find that the magnitude of the response is correlated with the amount of equity released by the reform and that the effect is strongest for younger households. Even for this group, the response was moderate. The aggregate effect of the reform was significant but small.",
author = "S{\o}ren Leth-Petersen",
note = "JEL classification: D14, D91, E21",
year = "2010",
doi = "10.1257/aer.100.3.1080",
language = "English",
volume = "100",
pages = "1080--1103",
journal = "American Economic Review",
issn = "0002-8282",
publisher = "American Economic Association",
number = "3",

}

RIS

TY - JOUR

T1 - Intertemporal consumption and credit constraints

T2 - Does consumption respond to an exogenous shock to credit?

AU - Leth-Petersen, Søren

N1 - JEL classification: D14, D91, E21

PY - 2010

Y1 - 2010

N2 - There is continuing controversy over the importance of credit constraints. This paper investigates whether total household expenditure and debt is affected by an exogenous increase in access to credit provided by a credit market reform that enabled Danish house owners to use housing equity as collateral for consumption loans. We find that the magnitude of the response is correlated with the amount of equity released by the reform and that the effect is strongest for younger households. Even for this group, the response was moderate. The aggregate effect of the reform was significant but small.

AB - There is continuing controversy over the importance of credit constraints. This paper investigates whether total household expenditure and debt is affected by an exogenous increase in access to credit provided by a credit market reform that enabled Danish house owners to use housing equity as collateral for consumption loans. We find that the magnitude of the response is correlated with the amount of equity released by the reform and that the effect is strongest for younger households. Even for this group, the response was moderate. The aggregate effect of the reform was significant but small.

U2 - 10.1257/aer.100.3.1080

DO - 10.1257/aer.100.3.1080

M3 - Journal article

VL - 100

SP - 1080

EP - 1103

JO - American Economic Review

JF - American Economic Review

SN - 0002-8282

IS - 3

ER -

ID: 21750169