Credit constraints in the market for consumer durables: evidence from micro data on car loans

We investigate the empirical significance of borrowing constraints in the market for consumer loans. We set up a theoretical model of consumer loan demand, which in the presence of credit rationing implies restrictions on the elasticities of loan demand with respect to the interest rate and the maturity of the loan. We estimate these elasticities and test the theoretical implications using micro data from the Consumer Expenditure Survey (1984-1995) on auto loan contracts. The econometric specification that we employ accounts for important features of the data: selection, censoring, and simultaneity. Our results suggest that credit constraints are binding for some groups in the population, in particular for young and low-income households

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 households, consumers are very responsive to maturity and less responsive to interest rate changes. Both elasticities vary with household income, with the maturity elasticity decreasing and the interest rate elasticity increasing with income. We argue that these results are consistent with the presence of binding credit constraints in the auto loan market

Simultaneity in Binary Outcome Models with an Application to Employment for Couples

Two of Peter Schmidt's many contributions to econometrics have been to introduce a simultaneous logit model for bivariate binary outcomes and to study estimation of dynamic linear fixed effects panel data models using short panels. In this paper, we study a dynamic panel data version of the bivariate model introduced in Schmidt and Strauss (1975) that allows for lagged dependent variables and fixed effects as in Ahn and Schmidt (1995). We combine a conditional likelihood approach with a method of moments approach to obtain an estimation strategy for the resulting model. We apply this estimation strategy to a simple model for the intra-household relationship in employment. Our main conclusion is that the within-household "correlation" in employment differs significantly by the ethnicity composition of the couple even after one allows for unobserved household specific heterogeneity

Patents and Industrialisation. An Historical Overview of the British Case, 1624-1907

A Report to the Strategic Advisory Board on Intellectual Property Policy (SABIP), U

Credit constraints in the market for consumer durables: evidence from micro data on car loans.

We investigate the empirical significance of borrowing constraints in the market for consumer loans. We set up a theoretical model of consumer loan demand, which in the presence of credit rationing implies restrictions on the elasticities of loan demand with respect to the interest rate and the maturity of the loan. We estimate these elasticities and test the theoretical implications using micro data from the Consumer Expenditure Survey (1984-1995) on auto loan contracts. The econometric specification that we employ accounts for important features of the data: selection, censoring, and simultaneity. Our results suggest that credit constraints are binding for some groups in the population, in particular for young and low-income households.

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 households, consumers are very responsive to maturity and less responsive to interest rate changes. Both elasticities vary with household income, with the maturity elasticity decreasing and the interest rate elasticity increasing with income. We argue that these results are consistent with the presence of binding credit constraints in the auto loan market.

Environmental evolution of the Paliouras coastal lagoon in the eastern Thermaikos gulf (Greece) during Holocene

The integration of lithology determination, micropaleontological and molluscan analyses, scanning electron microscopy, magnetic susceptibility measurement, and radiocarbon dating contributed to the interpretation of a sedimentary succession recovered from a 870-cm long borehole drilled at the Paliouras coastal lagoon in the eastern Thermaikos gulf (Greece). In this way, the reconstruction of the creation and evolution of the lagoon during the last 8000 years was accomplished. Four main evolutionary phases are identified: (1) initially, the pre-Holocene basement of the study area was inundated during the early Holocene marine transgression; (2) since ~ 8000–7900 cal yr BP an inner lagoon had been formed in the Paliouras coastal plain, within a rather restricted environment characterized by a Haynesina germanica, Cerastoderma glaucum and Hydrobia sp. assemblage, relatively high sediment magnetic susceptibility and an intense presence of abnormal foraminiferal tests and lenticular gypsum crystals; (3) during 7600–6900 cal yr BP, the inner lagoon presented a transition to an open system, clearly connected to the sea and characterized by an Ammonia beccarii, Aubignyna perlucida, and miliolids assemblage, more diversified molluscan fauna, minimum sediment magnetic susceptibility and the occurrence of lenticular gypsum aggregates; and finally (4) since ~ 5900 cal yr BP to the present time, the lagoon water body appears isolated from the marine environment, except of occasional seawater intrusions. The proposed evolutionary scenario for the Paliouras coastal lagoon is in accordance with the existing models of the sea level rise in the Aegean coastal areas concerning the time span before 4000 yr BP and the mid-late Holocene climate events. © 2019, Springer-Verlag GmbH Germany, part of Springer Nature