Article ID | Journal | Published Year | Pages | File Type |
---|---|---|---|---|
5057851 | Economics Letters | 2017 | 4 Pages |
Abstract
â¢Interest rate elasticities of consumer credit differ across credit types.â¢Borrower heterogeneity regarding elasticities varies across credit types.â¢Policy measures should be informed by these results.
Based on a unique dataset with monthly loan account data for three types of consumer credit, I estimate the interest rate elasticity of the demand for credit across credit types. The main result shows that elasticities vary depending on the credit type used in the estimation. Moreover, borrower heterogeneity with respect to interest rate elasticities differs across credit types, too. These results have important implications for policy measures aimed at stimulating borrowing and consumption.
Related Topics
Social Sciences and Humanities
Economics, Econometrics and Finance
Economics and Econometrics
Authors
Moritz Lukas,