Borrowing constraints and credit demand: evidence for Uruguay
This paper analyses the determinants of credit demand in the presence of borrowing constraints for Uruguayan economy. I model the determinants of debt level for Uruguayan households taking into account selection bias and endogeneity of household income and non-real estate assets. I found differences...
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| Tipo de recurso: | tesis de maestría |
| Estado: | Versión aceptada para publicación |
| Fecha de publicación: | 2020 |
| País: | Uruguay |
| Institución: | Universidad de la República |
| Repositorio: | COLIBRI |
| Idioma: | inglés |
| OAI Identifier: | oai:colibri.udelar.edu.uy:20.500.12008/36112 |
| Acceso en línea: | https://hdl.handle.net/20.500.12008/36112 |
| Access Level: | acceso abierto |
| Palabra clave: | Consumer debt Mortgage debt Borrowing constraints Sample selection Income endogeneity Income-to-debt elasticities Age-to-debt elasticities ECONOMIA |
| Sumario: | This paper analyses the determinants of credit demand in the presence of borrowing constraints for Uruguayan economy. I model the determinants of debt level for Uruguayan households taking into account selection bias and endogeneity of household income and non-real estate assets. I found differences considering the type of debt that families face; mortgage and consumer debt. For instance, in average, income-to-debt elasticities are smaller than one for both type of debt. Additionally, consumer debt income elasticity is smaller compared to mortgage debt. Besides, in average age-to-debt semi-elasticity are negatives for any type of debt. The effect is larger in consumer debt compared to mortgage debt. However, variable age is not statistically significant in determining debt semi- elasticity. In addition, I find evidence of sample selection for any type of debt, but I do not find evidence of endogeneity for consumer debt, nor for mortgage debt. |
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