Excess sensitivity of consumption, liquidity constraints, and mandatory saving

被引:7
作者
Park, C
Lim, PF
机构
[1] Natl Univ Singapore, Dept Econ, Singapore 117570, Singapore
[2] NTUC Fairpirce, Singapore 787103, Singapore
关键词
D O I
10.1080/1350485042000240101
中图分类号
F [经济];
学科分类号
02 [经济学];
摘要
Using Singapore mandatory saving system, it is examined whether liquidity constraint is a major reason for the excess-sensitivity of consumption to predictable income growth. Although the mandatory saving rate for employees could be a good measure for the financial condition of a liquidity-constrained consumer, it is found, through the nonlinear instrumental variable estimation, that consumption growth is not sensitive to changes in the mandatory saving rate for employees. This finding suggests that liquidity constraints would not be a major reason for the excess-sensitivity puzzle.
引用
收藏
页码:771 / 774
页数:4
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