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dc.contributor.authorMARZINOTTO, Benedicta
dc.date.accessioned2018-03-19T15:04:29Z
dc.date.available2018-03-19T15:04:29Z
dc.date.issued2018
dc.identifier.issn1028-3625
dc.identifier.urihttp://hdl.handle.net/1814/52604
dc.description.abstractThis paper explores the extent to which financial liberalization in the euro area had a differentiated impact on members’ private consumption patterns and in turn on their current account positions as a function of who got indebted in the first place. Theoretically, it builds on an inter-temporal consumption model augmented with household heterogeneity. Low/middle income groups are impatient and credit-constrained, whilst high-income groups are patient and under no constraint. Increased access to credit in previously financially repressed countries implies a relaxation of collateral constraints specifically for low-income groups, who differently from high-income agents borrow to finance current consumption. It follows that financial liberalization is associated with deteriorating external positions there where initial levels of financial openness and inclusion are lowest and the share of the low/middle-income group largest.en
dc.format.mimetypeapplication/pdfen
dc.language.isoenen
dc.relation.ispartofseriesEUI RSCASen
dc.relation.ispartofseries2018/15en
dc.rightsinfo:eu-repo/semantics/openAccessen
dc.subjectCurrent accounten
dc.subjectIncome inequalityen
dc.subjectFinancial liberalizationen
dc.subjectDebt leverageen
dc.subjectPanel regressionsen
dc.subjectF32en
dc.subjectF41en
dc.subjectE2en
dc.titleCurrent account imbalances, household consumption and debt in the euro area : a tale of two financial liberalizationsen
dc.typeWorking Paperen


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