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Identifying Preferences when Households are Financially Constrained

Andreas Tryphonides

arXiv 5 May 2020 · Econometrics · publishedReview of Economic Dynamics (2023) · 1 citations (OpenAlex)

arXiv:2005.02010 · PDF · DOI · OpenAlex · Extracted main text

Abstract

This paper shows that utilizing information on the extensive margin of financially constrained households can narrow down the set of admissible preferences in a large class of macroeconomic models. Estimates based on Spanish aggregate data provide further empirical support for this result and suggest that accounting for this margin can bring estimates closer to microeconometric evidence. Accounting for financial constraints and the extensive margin is shown to matter for empirical asset pricing and quantifying distortions in financial markets.

Citation extraction

70
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appendix boundary found by appendix_titled_section at “Appendix A” · 63% of the source is main text. Read the extracted text to check this.

Most heavily cited references

The works this paper leans on most, across its whole bibliography — not restricted to papers in our corpus. Ranked by composite intensity, which combines how often a work is mentioned, how many sections mention it, and how much of that falls in the main text rather than the appendix.

ReferenceIntensityMentionsSectionsMain text
1Ascari, Magnusson, and Mavroeidis (2021) Empirical evidence on the Euler equation for consumption in the US0.73732100%
2Chetty, Guren, Manoli, and Weber (2011) Are Micro and Macro Labor Supply Elasticities Consistent? A Review of Evidence on the Intensive and Extensive Margins0.64422100%
3Attanasio and Low (2004) Estimating Euler equations0.64422100%
4Chari, Kehoe, and McGrattan (2007) Business Cycle Accounting0.64422100%
5Mehra and Prescott (1985) The equity premium: A puzzle0.64422100%
6Chen, Christensen, and Tamer (2018) Monte Carlo Confidence Sets for Identified Sets0.58531100%
7Heathcote, Storesletten, and Violante (2014) Consumption and Labor Supply with Partial Insurance: An Analytical Framework0.5112250%
8EC (1999) Business and Consumer Surveys0.5112250%
9Heaton and Lucas (1996) Evaluating the Effects of Incomplete Markets on Risk Sharing and Asset Pricing0.51121100%
10Aiyagari and Gertler (1991) Asset returns with transactions costs and uninsured individual risk0.51121100%

Showing the top 10 of 70 scored citations.