Consumption with Liquidity Constraints and Habit Formation

Abstract: In an intertemporal consumption-saving model with uncertainty, liquidity constraints and habit formation, we have shown that habits can be a cushion against liquidity constraints by pushing even the impatient individual towards a choice of lower level of consumption. Dans un modèle intertemporel de consommation et d'épargne avec incertitude, contraintes de liquidité et formation d'habitudes, nous avons démontré que les habitudes peuvent être un coussin contre les contraintes de liquidités en poussant même un individu impatient vers un choix d'un montant de consommation moins élevé.

Keywords: Habit formation; liquidity constraints; income uncertainty; Formation d'habitudes; contrainte de liquidité; incertitude de revenu (search for similar items in EconPapers)
JEL-codes: D91 E21 (search for similar items in EconPapers)
Date: 2000-10-01
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Citations: View citations in EconPapers (3)

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Persistent link: https://EconPapers.repec.org/RePEc:cir:cirwor:2000s-41

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