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“Borrowing” Constraints: a Panel Study

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By James H. Cardon, Brigham Young, Barrett E
| scholarsarchive.byu.edu
Keywords borrowing constraints, Life Cycle/Permanent Income Hypothesis, LC/PIH College Family, Home, and Social Sciences Abstract Although the theory of aggregate consumption was first addressed in 1936 by Keynes, the modern theory stems from work done in the mid 1950’s by Modigliani and Brumberg (1954) and Friedman (1957); their theory has been termed the Life Cycle/Permanent Income Hypothesis (LC/PIH).
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