Household Behaviour and Debt Demand
The theoretical economic framework for consumption, saving and indebtedness decisions is developed within the Life Cycle theory, proposed by Modigliani and Brumberg in 1954, and the Permanent Income Hypothesis, developed by Friedman in 1957.
KeywordsRisk Aversion Credit Card Risk Preference Consumer Credit Hyperbolic Discount
Unable to display preview. Download preview PDF.