| Author: | Garcia, R. Lusardi, A. Ng, S. |
| Title: | Excess sensitivity and asymmetries in consumption: an empirical investigation |
| Journal: | Journal of Money, Credit and Banking
1997 : MAY, VOL. 29:2, p. 154-176 |
| Index terms: | SENSITIVITY ANALYSIS CONSUMPTION MONEY |
| Language: | eng |
| Abstract: | Most empirical studies on liquidity constraints classify a consumer as being constrained on the basis of a single indicator such as the asset-to-income ratio. In this analysis, the authors model the probability that a consumer faces liquidity constraints as a function of multiple social and economic factors. This probability function is estimated in a switching regressions framework. The switching regressions apply optimal weights to the densities for the Euler equations in the two states and are less susceptible to sample misclassification. |
SCIMA