Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/200929
Authors: 
Hur, Seok-Kyun
Sung, Taeyoon
Year of Publication: 
2003
Series/Report no.: 
KDI Policy Study 2003-03
Abstract: 
This paper examines the distributional effect of loosening liquidity constraints on consumption expenditures, asset holdings and debts using two years of cross-section data sets (1996 and 2001). The data sets of our concern are unique in that they enable us to evaluate the consequences of the economic regime change following the currency crisis in Korea. Our findings indicate that (1) the loosened monetary regime after the crisis lifted the liquidity constraints as well as lowered various interest rates uniformly, (2) the less binding liquidity constraints contributed to the contraction of consumption inequality, which accounts for approximately 22.4% of the total reduction, and (3) the reduction of consumption inequality accompanied by the widened income inequality is attributed to easier access to debt financing.
Persistent Identifier of the first edition: 
ISBN: 
89-8063-171-5
Document Type: 
Research Report

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