Aydilek, Asiye 2016. The allocation of time and puzzling profiles of the elderly. Economic Modelling, Vol. 53, p. 515.
Browning, Martin Crossley, Thomas F. and Lührmann, Melanie 2016. Durable Purchases over the Later Life Cycle. Oxford Bulletin of Economics and Statistics, Vol. 78, Issue. 2, p. 145.
Kolasa, Aleksandra and Rubaszek, Michał 2016. The effect of ageing on the European economies in a life-cycle model. Economic Modelling, Vol. 52, p. 50.
Kraft, Holger Munk, Claus Seifried, Frank Thomas and Wagner, Sebastian 2016. Consumption habits and humps. Economic Theory,
Krueger, Dirk and Ludwig, Alexander 2016. On the optimal provision of social insurance: Progressive taxation versus education subsidies in general equilibrium. Journal of Monetary Economics, Vol. 77, p. 72.
Ortalo-Magné, François and Prat, Andrea 2016. Spatial Asset Pricing: A First Step. Economica, Vol. 83, Issue. 329, p. 130.
Suzuki, Michio 2016. UNDERSTANDING THE COSTS OF CONSUMER DURABLE ADJUSTMENTS. Economic Inquiry, Vol. 54, Issue. 3, p. 1561.
Wang, Haining Cheng, Zhiming and Smyth, Russell 2016. Language and consumption. China Economic Review, Vol. 40, p. 135.
Xu, Shaofeng 2016. On the welfare cost of rare housing disasters. Journal of Economic Dynamics and Control, Vol. 69, p. 301.
Zanin, Luca 2016. The effects of various motives to save money on the propensity of Italian households to allocate an unexpected inheritance towards consumption. Quality & Quantity,
Berger, David and Vavra, Joseph 2015. Consumption Dynamics During Recessions. Econometrica, Vol. 83, Issue. 1, p. 101.
Davis, Morris A. and Van Nieuwerburgh, Stijn 2015.
Guler, Bulent 2015. Innovations in information technology and the mortgage market. Review of Economic Dynamics, Vol. 18, Issue. 3, p. 456.
Jia, Ye George 2015. The impact of personal bankruptcy law on entrepreneurship. Canadian Journal of Economics/Revue canadienne d'économique, Vol. 48, Issue. 2, p. 464.
Quadrini, Vincenzo and Ríos-Rull, José-Víctor 2015.
Röhrs, Sigrid and Winter, Christoph 2015. Public versus private provision of liquidity: Is there a trade-off?. Journal of Economic Dynamics and Control, Vol. 53, p. 314.
Zhang, Linwan Wu, Weixing Wei, Ying and Pan, Rulu 2015. Stock holdings over the life cycle: Who hesitates to join the market?. Economic Systems, Vol. 39, Issue. 3, p. 423.
Chu, Yongqiang 2014. Credit constraints, inelastic supply, and the housing boom. Review of Economic Dynamics, Vol. 17, Issue. 1, p. 52.
Dotsey, Michael Li, Wenli and Yang, Fang 2014. CONSUMPTION AND TIME USE OVER THE LIFE CYCLE. International Economic Review, Vol. 55, Issue. 3, p. 665.
Fella, Giulio 2014. A generalized endogenous grid method for non-smooth and non-concave problems. Review of Economic Dynamics, Vol. 17, Issue. 2, p. 329.
In this paper we investigate whether a standard life-cycle model in which households purchase nondurable consumption and consumer durables and face idiosyncratic income and mortality risk as well as endogenous borrowing constraints can account for two key patterns of consumption and asset holdings over the life cycle. First, consumption expenditures on both durable and nondurable goods are hump-shaped. Second, young households keep very few liquid assets and hold most of their wealth in consumer durables. In our model durables play a dual role: they both provide consumption services and act as collateral for loans. A plausibly parameterized version of the model predicts that the interaction of consumer durables and endogenous borrowing constraints induces durables accumulation early in life and higher consumption of nondurables and accumulation of financial assets later in the life cycle, of an order of magnitude consistent with observed data.
This list contains references from the content that can be linked to their source. For a full set of references and notes please see the PDF or HTML where available.
Email your librarian or administrator to recommend adding this journal to your organisation's collection.