Equities and inequality
Alessandra Bonfiglioli ()
Economics Working Papers from Department of Economics and Business, Universitat Pompeu Fabra
Most US credit card holders revolve high-interest debt, often combined with substantial (i) asset accumulation by retirement, and (ii) low-rate liquid assets. Hyperbolic discounting can resolve only the former puzzle (Laibson et al., 2003). Bertaut and Haliassos (2002) proposed an 'accountant-shopper'framework for the latter. The current paper builds, solves, and simulates a fully-specified accountant-shopper model, to show that this framework can actually generate both types of co-existence, as well as target credit card utilization rates consistent with Gross and Souleles (2002). The benchmark model is compared to setups without self-control problems, with alternative mechanisms, and with impatient but fully rational shoppers.
Keywords: Income inequality; financial development; capital market frictions; investor protection; instrumental variables; dynamic panel data (search for similar items in EconPapers)
JEL-codes: D31 E44 G30 O15 O16 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-dev, nep-fin, nep-fmk and nep-mac
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (12) Track citations by RSS feed
Downloads: (external link)
https://econ-papers.upf.edu/papers/947.pdf Whole Paper (application/pdf)
Working Paper: Equities and Inequality (2005)
Working Paper: Equities and Inequality (2004)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:upf:upfgen:947
Access Statistics for this paper
More papers in Economics Working Papers from Department of Economics and Business, Universitat Pompeu Fabra
Bibliographic data for series maintained by ().