Household‐Level Education Borrowing Constraints: Evidence Using the College Attendance of the Sisters of Vietnam Draft Avoiders

2009 ◽  
Vol 3 (3) ◽  
pp. 197-223 ◽  
Author(s):  
Andrew W. Horowitz ◽  
Jungmin Lee ◽  
Julie R. Trivitt
Keyword(s):  
Borrowing Constraints ◽  
College Attendance ◽  
Household Level ◽  
Vietnam Draft

scholarly journals Remittances and Income Smoothing

2011 ◽  
Vol 101 (3) ◽  
pp. 582-587 ◽  
Author(s):  
Catalina Amuedo-Dorantes ◽  
Susan Pozo
Keyword(s):  
Developing Countries ◽  
Household Income ◽  
Borrowing Constraints ◽  
Income Smoothing ◽  
Reverse Causality ◽  
Income Volatility ◽  
Household Level ◽  
Level Data ◽  
Main Motive

Due to inadequate savings and binding borrowing constraints, income volatility can make households in developing countries particularly susceptible to economic hardship. We examine the role of remittances in either alleviating or increasing household income volatility using Mexican household level data over the 2000 through 2008 period. We correct for reverse causality and endogeneity and find that while income smoothing does not appear to be the main motive for sending remittances in a non-negligible share of households, remittances do indeed smooth household income on average. Other variables surrounding income volatility are also considered and evaluated.

scholarly journals Welfare Implications of Credit Rationing for Financial Consumers: An Empirical Investigation on the Case of the Korean Residential Mortgage Sector

2020 ◽  
Vol 5 (No. 1 Apr 2020) ◽  
pp. 13-24 ◽  
Author(s):  
Soojin Park ◽  
Man Cho
Keyword(s):  
Financial Stability ◽  
Choice Model ◽  
Credit Rationing ◽  
Borrowing Constraints ◽  
Mortgage Lending ◽  
Financial Inclusion ◽  
Policy Implications ◽  
Negative Effects ◽  
Household Level ◽  
Residential Mortgage

Credit rationing through borrowing constraints has long been an important research topic in the literature, in the context of managing financial risks (i.e., financial stability) as well as of expanding financial service to more marginal borrower segments (i.e., financial inclusion). This study empirically investigates the role of borrowing constraints in the residential mortgage lending sector in Korea, by utilizing a discrete tenure choice model to test the constraining effects of two particular lending restrictions on households’ home owning decisions - the wealth and income constraints as measured by the maximum loan-to-value (LTV) ratio and that of debt-to-income (DTI) ratio. Using the household-level micro data from Korea, we report that: the lending restrictions exhibit negative effects on the propensity to own; those constraining effects are also shown to increase for younger borrower cohorts; and, the magnitude of the effect of wealth constraint is larger than that of the income constraint, which is consistent with the findings from the prior studies. Using the empirical findings, we discuss policy implications of relevancy, in particular, as to how to balance between two often competing policy objectives - ensuring financial stability and extending financial inclusion - in the context of the residential mortgage lending sector in Korea.

scholarly journals The Effects of Regional House Prices on Consumption in Korea: Heterogeneous Behaviors According to Homeownership Status and Lifecycle Stage

2020 ◽  
Vol 12 (9) ◽  
pp. 3517
Author(s):  
Jong Chil Son ◽  
Hail Park
Keyword(s):  
House Prices ◽  
Borrowing Constraints ◽  
Young Cohort ◽  
Empirical Estimation ◽  
Income Volatility ◽  
Consumption Growth ◽  
Full Sample ◽  
Household Level ◽  
Positive Effects ◽  
Age Cohort

This paper investigates the effects of regional house prices on consumption growth, with a focus on heterogeneity across homeownership statuses and lifecycle stages, using household-level panel data in Korea from 2004 to 2017. The empirical estimation results indicate, firstly, that the growth of regional house prices has overall positive effects on consumption growth in the full sample including homeowners and renters. Secondly, house prices have significant and large effects on consumption growth for homeowners, while the effects are sharply reversed for renters, being weakly negative. Thirdly, the sensitivity of homeowners’ consumption in response to house prices differs across different stages of the lifecycle. The consumption sensitivity is greatest in the old age cohort for the sample covering the owners of single and multiple homes. When using a subsample of only single homeowners, however, the young cohort turns out to have the highest sensitivity, implying that young single homeowners face high borrowing constraints and expected income volatility. Finally, renters’ consumption sensitivity in response to house prices becomes more negative over the lifecycle.

scholarly journals On the welfare cost of consumption fluctuations in the presence of memorable goods

2020 ◽  
Vol 11 (4) ◽  
pp. 1177-1214 ◽  
Author(s):  
Rong Hai ◽  
Dirk Krueger ◽  
Andrew Postlewaite
Keyword(s):  
Borrowing Constraints ◽  
Welfare Cost ◽  
Income Shocks ◽  
Income Risk ◽  
Household Level ◽  
Nondurable Goods ◽  
Empirical Estimates ◽  
Percentage Points ◽  
Consumption Fluctuations ◽  
Excess Sensitivity

We propose a new category of consumption goods, memorable goods, that generate a utility flow even after physical consumption. Empirically, memorable goods expenditures exhibit frequent zero monthly purchases and lumpy expenditure spikes. Memorable goods expenditures are 20% the size of nondurable expenditures, but three times as volatile. We then develop a consumption‐savings model with borrowing constraints and income risk that formalizes the notion of memorable goods and distinguishes them from other nondurable goods. We show that consumers optimally choose lumpy consumption of memorable goods. We then measure the welfare cost of consumption fluctuations using our calibrated model and empirically evaluate our calibrated model's predictions for the consumption response to predictable income changes. We find that the welfare cost of household‐level consumption fluctuations induced by income shocks fall from 20.4 to 12.3 percentage points if memorable goods are accounted for, and that empirical estimates of excess sensitivity of consumption may significantly be driven by memorable goods expenditures.

SHOULD THE PRIVATE SECTOR PROVIDE PUBLIC CAPITAL?

2007 ◽  
Vol 11 (3) ◽  
pp. 318-346
Author(s):  
SANTANU CHATTERJEE
Keyword(s):  
Open Economy ◽  
Public Capital ◽  
Borrowing Constraints ◽  
International Capital ◽  
Standard Assumption ◽  
Production Externalities ◽  
International Capital Markets ◽  
Private Provision ◽  
Large Production ◽  
Government Provision

The choice between private and government provision of a productive public good like infrastructure (public capital) is examined in the context of an endogenously growing open economy. The accumulation of public capital need not require government provision, in contrast to the standard assumption in the literature. Even with an efficient government, the relative costs and benefits of government and private provision depend crucially on the economy's underlying structural conditions and borrowing constraints in international capital markets. Countries with limited substitution possibilities and large production externalities may benefit from governments encouraging private provision of public capital through targeted investment subsidies. By contrast, countries with flexible substitution possibilities and relatively smaller externalities may benefit either from governments directly providing public capital or from regulation of private providers. The transitional dynamics also are shown to depend on the underlying elasticity of substitution and the size of the production externality.

Generation and analysis of biogas from kitchen waste at a small scale

2020 ◽  
pp. 140-148
Author(s):  
Md. Kumail Naqvi ◽  
Mrinal Anthwal ◽  
Ravindra Kumar
Keyword(s):  
Food Waste ◽  
Total Solid ◽  
Small Scale ◽  
Cow Dung ◽  
Retention Period ◽  
Household Level ◽  
Replacement Model ◽  
The Everyday ◽  
Scale Experiment ◽  
Small Period

Biogas is the product of anaerobic vitiation of biodegradable matter. This paper focuses on the need of alternative and green sources of energy at a household level and how biogas produced from the everyday organic waste has the potential and possibility to replace LPG cylinders at houses, shops etc. and empower us to step towards an eco-friendly future. The purpose this small-scale experiment has been to find the perfect input matter that is easy to acquire and which produces the maximum amount of gas from minimum input and within small period of waste retention. Four different types of input waste material containing different quantities of cow dung and kitchen food waste were studied through individual experimental setups. Waste was mixed and kept at room temperature and the pH and total solid concentration of the samples were recorded on regular intervals. From the experiment it was found that the optimum yield of biogas at a small scale, based on the parameters such as retention period, pH and total solid con-centration can be obtained by the use of food waste form households and kitchens. The exact composition has been discussed in this paper. The energy generated by the small-scale generator has also been compared to that of an LPG cylinder and an LPG replacement model has also been presented.

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