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Title: The Nature of Credit Constraints and Human Capital
Resulting in 1 citation.
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Lochner, Lance John Monge-Naranjo, Alexander |
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The Nature of Credit Constraints and Human Capital American Economic Review 101,6 (October 2011): 2487-2529. Also: http://www.aeaweb.org/articles.php?doi=10.1257/aer.101.6.2487 Cohort(s): NLSY79, NLSY97 Publisher: American Economic Association Keyword(s): College Education; Credit/Credit Constraint; Debt/Borrowing; Family Income; Human Capital; Modeling; Student Loans / Student Aid Permission to reprint the abstract has not been received from the publisher. We develop a human capital model with borrowing constraints explicitly derived from government student loan (GSL) programs and private lending under limited commitment. The model helps explain the persistent strong positive correlation between ability and schooling in the United States, as well as the rising importance of family income for college attendance. It also explains the increasing share of undergraduates borrowing the GSL maximum and the rise in student borrowing from private lenders. Our framework offers new insights regarding the interaction of government and private lending, as well as the responsiveness of private credit to economic and policy changes. (JEL D14, H52, I22, I23, J24) |
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Bibliography Citation
Lochner, Lance John and Alexander Monge-Naranjo. "The Nature of Credit Constraints and Human Capital." American Economic Review 101,6 (October 2011): 2487-2529.
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