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@article{ART001604006},
author={Lim, Byung-in and Jai Hyung Yoon},
title={The Analysis on the Credit Card Bubble in Korea with the Permanent Income Hypothesis and the Liquidity Constraint},
journal={Korean Social Science Journal},
issn={1225-0368},
year={2011},
volume={38},
number={2},
pages={53-79}

TY - JOUR
AU - Lim, Byung-in
AU - Jai Hyung Yoon
TI - The Analysis on the Credit Card Bubble in Korea with the Permanent Income Hypothesis and the Liquidity Constraint
JO - Korean Social Science Journal
PY - 2011
VL - 38
IS - 2
PB - Korean Social Science Research Council
SP - 53
EP - 79
SN - 1225-0368
AB - We examined how the Permanent Income Hypothesis (PIH) explains differences in the consumption patterns between card bubble periods and non‐bubble periods with KLIPS panel data. From empirical results, with regard to the food consumption, the PIH represents significant results for the low income household, while the middle income households had the liquidity constraint. For the health and medical service consumption, all households were free from liquidity constraints except for the year when the credit card crunch occurred. For total consumption, the high income households were free from the liquidity constraint. On the other hand, the middle income households confronted a liquidity constraint. However, the low income households were free from the liquidity constraint in the card bubble periods, while the PIH was rejected in the non‐bubble periods. Finally, we can argue that abolishing the ceiling on credit card cashadvance services has the same effect as eliminating borrowing constraints.
KW - Permanent Income Hypothesis;liquidity constraint;consumption function;card bubble
DO -
UR -
ER -

Lim, Byung-in and Jai Hyung Yoon. (2011). The Analysis on the Credit Card Bubble in Korea with the Permanent Income Hypothesis and the Liquidity Constraint. Korean Social Science Journal, 38(2), 53-79.

Lim, Byung-in and Jai Hyung Yoon. 2011, "The Analysis on the Credit Card Bubble in Korea with the Permanent Income Hypothesis and the Liquidity Constraint", Korean Social Science Journal, vol.38, no.2 pp.53-79.

Lim, Byung-in, Jai Hyung Yoon "The Analysis on the Credit Card Bubble in Korea with the Permanent Income Hypothesis and the Liquidity Constraint" Korean Social Science Journal 38.2 pp.53-79 (2011) : 53.

Lim, Byung-in, Jai Hyung Yoon. The Analysis on the Credit Card Bubble in Korea with the Permanent Income Hypothesis and the Liquidity Constraint. 2011; 38(2), 53-79.

Lim, Byung-in and Jai Hyung Yoon. "The Analysis on the Credit Card Bubble in Korea with the Permanent Income Hypothesis and the Liquidity Constraint" Korean Social Science Journal 38, no.2 (2011) : 53-79.

Lim, Byung-in; Jai Hyung Yoon. The Analysis on the Credit Card Bubble in Korea with the Permanent Income Hypothesis and the Liquidity Constraint. Korean Social Science Journal, 38(2), 53-79.

Lim, Byung-in; Jai Hyung Yoon. The Analysis on the Credit Card Bubble in Korea with the Permanent Income Hypothesis and the Liquidity Constraint. Korean Social Science Journal. 2011; 38(2) 53-79.

Lim, Byung-in, Jai Hyung Yoon. The Analysis on the Credit Card Bubble in Korea with the Permanent Income Hypothesis and the Liquidity Constraint. 2011; 38(2), 53-79.

Lim, Byung-in and Jai Hyung Yoon. "The Analysis on the Credit Card Bubble in Korea with the Permanent Income Hypothesis and the Liquidity Constraint" Korean Social Science Journal 38, no.2 (2011) : 53-79.