DP257 Liquidity-Constrained Households in an Italian Cross-Section
|Author(s):||Tullio Jappelli, Marco Pagano|
|Publication Date:||August 1988|
|Keyword(s):||Borrowing, Capital Markets, Consumption, Italy, Liquidity Constraints|
|JEL(s):||122, 315, 921|
|Programme Areas:||Applied Macroeconomics|
|Link to this Page:||cepr.org/active/publications/discussion_papers/dp.php?dpno=257|
This paper attempts to evaluate the effects of capital market imperfections on consumer behavior, on the basis of cross-sectional Italian data. We evaluate the difference between desired and observed consumption using a technique proposed by Hayashi. We find that in Italy borrowing constraints are more severe than in the United States, and that they are more stringent for young households, non-home-owners, the unemployed and consumers living in the Southern regions.