JOB LOSS, CREDIT CONSTRAINTS, AND CONSUMPTION GROWTH

• 成果类型: Article
• 署名作者: Crossley, Thomas F.; Low, Hamish W.
• 署名单位: Koc University; University of Essex; University of Cambridge
• 刊物名称: REVIEW OF ECONOMICS AND STATISTICS
• ISSN/ISSBN: 0034-6535
• DOI: 10.1162/REST_a_00417
• 发表日期: 2014-12
• 页码: 876-884
• 关键词: permanent-income hypothesis; liquidity constraints; panel data; unemployment; expenditure; shocks; matter

摘要

We use direct evidence on credit constraints to study their importance for household consumption growth and for welfare. We distentangle the direct effect on consumption growth of a currently binding credit constraint from the indirect effect of a potentially binding credit constraint that generates consumption risk. Our data are focused on job losers. We find that less than 5% of job losers experience a binding credit constraint, but those who do experience significant welfare losses, and consumption growth is 24% higher than for the rest of the population. However, even among those who are unconstrained and are able to borrow if needed, consumption responds to transitory income.