Borrowing Constraints, Portfolio Choice and Precautionary Motives: Theoretical Predictions and Empirical Complications

Michael Haliassos and Christis Hassapis ()
Additional contact information
Christis Hassapis: University of Cyprus

No 1341, Computing in Economics and Finance 1999 from Society for Computational Economics

Abstract: This paper studies the effects of two classes of borrowing constraints, collateral and income based, on wealth accumulation, portfolio behavior, and precautionary motives. We examine the sensitivity of solutions to the tightness of constraints, education levels, and preference parameters. The models are calibrated using the 1992 Survey of Consumer Finances. Our findings may help explain the failure of recent empirical studies to uncover sizable precautionary effects on wealth and on portfolio composition.

Date: 1999-03-01
New Economics Papers: this item is included in nep-edu
References: Add references at CitEc
Citations: View citations in EconPapers (2)

Downloads: (external link)
http://papers.ssrn.com/paper.taf?abstract_id=131452 main text (text/html)

Related works:
Working Paper: Borrowing Constraints, Portfolio Choice, and Precautionary Motives: Theoretical Predictions and Empirical Complications (1998)
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:sce:scecf9:1341

Access Statistics for this paper

More papers in Computing in Economics and Finance 1999 from Society for Computational Economics CEF99, Boston College, Department of Economics, Chestnut Hill MA 02467 USA. Contact information at EDIRC.
Bibliographic data for series maintained by Christopher F. Baum ().