Estimating interest rate elasticities in consumer credit

Moritz Lukas

Economics Letters, 2017, vol. 156, issue C, 155-158

Abstract: Based on a unique dataset with monthly loan account data for three types of consumer credit, I estimate the interest rate elasticity of the demand for credit across credit types. The main result shows that elasticities vary depending on the credit type used in the estimation. Moreover, borrower heterogeneity with respect to interest rate elasticities differs across credit types, too. These results have important implications for policy measures aimed at stimulating borrowing and consumption.

Keywords: Intertemporal consumption; Banking; Household finance; Consumer credit (search for similar items in EconPapers)
Date: 2017
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0165176517301829
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:ecolet:v:156:y:2017:i:c:p:155-158

DOI: 10.1016/j.econlet.2017.05.004

Access Statistics for this article

Economics Letters is currently edited by Economics Letters Editorial Office

More articles in Economics Letters from Elsevier
Bibliographic data for series maintained by Catherine Liu ().