Previous tests for liquidity constraints using consumption Euler equations have frequently used asset-based sample … growth is not strongly affected by the probability of liquidity constraints. Quantile regressions suggest that liquidity … with theoretical simulations, however. We interpret these findings as weak evidence that liquidity constraints affect the …

We analyse the welfare implications of liquidity constraints for households in an overlapping generations model with … growth. In a closed economy with exogenous technical progress, liquidity constraints reduce welfare if the economy is …