Borrowing Costs and the Demand for Equity over the Life Cycle

By Steven J. Davis, Felix Kubler, P. Willen. Review of Economics and Statistics, 2006

170 citations recorded by the source corpus.

Subfields: Accounting, Economics and Econometrics, Finance

View Paper: https://www.semanticscholar.org/paper/44b270afd513615a0f644d2f3766371177ca9e57

Citations in the corpus

• Consumer Spending and the Economic Stimulus Payments of 2008 (2013, unknown): “22 This constraint could reflect a hard constraint as studied in Zeldes (1989), or larger interest rates for borrowing than for saving (e.g., Davis, Kubler, and Willen 2006), or a cost for accessing illiquid wealth (e.g., Angeletos et al. 2001; Kaplan and Violante 2011).”
• Participation Constraints in the Stock Market: Evidence from Unexpected Inheritance Due to Sudden Death (2011, unknown): “The evidence in Table 8 is also helpful in addressing whether non-participation is caused by borrowing constraints, as suggested by Constantinides, Donaldson, and Mehra (2002), and Davis, Kubler, and Willen (2006).”
• Financial Illiteracy and Stock Market Participation: Evidence from the RAND American Life Panel (2010, unknown): “The ‘stockholding puzzle’ has been related to features of the environment such as fixed costs (Vissing-Jorgenson and Attanasio, 2003), credit-constraints (Constantinides et al., 2002), and the wedge between borrowing and lending rates (Davis et al., 2006).”
• Asset Market Participation and Portfolio Choice over the Life-Cycle (2012, unknown): “As for the parametric restrictions, we rely on Deaton and Paxson (1994) and impose that time effects sum to zero once the variables have been detrended. Since our data cover several years, we should be able to separate trend and cycle, and thus be reasonably confident about the decomposition of age,”
• An empirical investigation of labor income processes (2007, unknown): “Existing studies have used the RIP process as the income process, which often implies puzzling differences in behavior by education level (see, for example, Hubbard et al., 1994; and Davis et al., 2003).”
• Dynamic asset allocation with stochastic income and interest rates. (2010, unknown): “A recent paper by Davis, Kubler, and Willen (2003) studies the portfolio choice under a " soft " borrowing constraint that allows individuals to borrow even with a negative current wealth although at a rate higher than the riskless interest rate.”