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

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.

Singlet particle extension of the minimal Higgs sector

A scalar singlet particle, named U, is coupled to the Higgs sector of the standard model for the purpose of parametrizing the large Higgs mass behaviour of the theory. The radiative corrections to the low-energy parameters ([varrho] parameter, W mass shift) are computed at one- and two-loop levels. The new contributions demonstrate the arbitrariness of the heavy-Higgs theory, i.e., the dependence on the way of taking the large-Higgs-mass limit, but they fail to restore its uniqueness. The U particle effects at high energies are examined in accordance with partial wave analysis methods developed in the study of [pi][pi] scattering. The corrections to the [beta] parameter are derived from the longitudinal vector boson scattering amplitude calculated below the 1 TeV threshold. Assuming a small, of the order of 10%, difference between the masses of the scalars, we find a small but positive enhancement to the standard model contributions. The overall result indicates that no resonance will appear in the isospin I=1 channel at any energy above the threshold.Peer Reviewedhttp://deepblue.lib.umich.edu/bitstream/2027.42/30745/1/0000395.pd

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

Aperiodic nano-photonic design

The photon scattering properties of aperiodic nano-scale dielectric structures can be tailored to closely match a desired response by using adaptive algorithms for device design. We show that broken symmetry of aperiodic designs provides access to device functions not available to conventional periodic photonic crystal structures.Comment: 23 pages, LaTex, 8 postscript figure

Credit risk in European banks: The bright side of the internal ratings based approach

This paper investigates the accuracy of internal rating based (IRB) models in measuring credit risk. We contribute to the growing debate on the current prudential regulatory framework by investigating the use of validated IRB models in promoting efficient risk management practices. Our empirical analysis is based on a novel panel data set of 177 Western European banks observed from 2008 to 2015, in the aftermath of the financial and economic crisis. We find that IRB banks were able to curb the increase in credit risk driven by the macroeconomic slowdown better than banks under the standardized approach. This suggests that the introduction of the internal ratings based approach by Basel II has promoted the adoption of stronger risk management practices among banks, as meant by the regulators

Persistent median artery in the carpal tunnel: anatomy, embryology, clinical significance, and review of the literature

The median artery usually regresses after the eighth week of intrauterine life, but in some cases it persists into adulthood. The persistent median artery (PMA) passes through the carpal tunnel of the wrist, accompanying the median nerve. During anatomical dissection in our department, we found two unilateral cases of PMA originating from the ulnar artery. In both cases the PMA passed through the carpal tunnel, reached the palm, and anastomosed with the ulnar artery, forming a medio-ulnar type of superficial palmar arch. In addition, in both cases we observed a high division of the median nerve before entering the carpal tunnel. Such an artery may result in several complications such as carpal tunnel syndrome, pronator syndrome, or compression of the anterior interosseous nerve. Therefore, the presence of a PMA should be taken into consideration in clinical practice. This study presents two cases of PMA along with an embryological explanation, analysis of its clinical significance, and a review of the literature. The review of the literature includes cases observed during surgical procedures or anatomical dissections. Cases observed by means of imaging techniques were not included in the study