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.