Jappelli, Tullio; Pischke, Jörn-Steffen; Souleles, … - In: The Review of Economics and Statistics 80 (1998) 2, pp. 251-262
Previous tests for liquidity constraints using consumption Euler equations have frequently split the sample on the basis of wealth, arguing that low-wealth consumers are more likely to be constrained. We propose alternative tests using different and more direct information on borrowing...