Econometrica: Oct 1962, Volume 30, Issue 4
An Analysis of Instalment Borrowing by Durable Goods Buyers
Maw Lin LeeEffects of instalment buying on the demand for durable goods and economic instability are closely related to the borrowing behavior of individual credit users. The present paper examines major factors associated with consumer borrowing and discusses the relevance of our findings to some formal hypotheses in economic theory. The relationship of installment buying to the level of economic activity and the predictive power of estimated relationships are also investigated.
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