The aim of this thesis study is to enlighten the economic relationship among consumption, income and liquidity constraints in Turkish Economy. For this aim, generalized instrumental variables estimation technique (GIVE) is used to estimate reduced-form consumption equations derived by Hall (1978) and improved by Campbell and Mankiw (1989). Estimations are realized for two separate periods of Turkish Economy. For the sub-period of 1987 to 1995, it is observed that a significant part of households consume their current disposable income. It is thought that the presence of liquidity constraints forced households to determine their consumption simply according to their current disposable income. However, it is observed that the dependence of households to disposable income decreased substantially, when analyzed for the overall period of 1987 to 2002. Financial deepening in the economy and the rise of real credit volume contributed to the decline of the level of liquidity constraints and enabled households to allocate their income across subsequent periods evenly. Thus, it is concluded that private consumption behavior is consistent with the Permanent Income / Life- Cycle Consumption theory for 1987 to 2002 period in Turkish Economy.

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Thesis advisor: Robert Murphy / The following three essays address two issues that have gained much recent attention among macroeconomists. The first essay - "International Policy Coordination: Policy Analysis in a Staggered Wage-setting Model" - deals with the incentives for countries to coordinate monetary and fiscal policies in an environment where the countries differ only in the length of the labor contracts which typify their respective economies. The second essay - "Tests for Liquidity Constraints: A Critique" and the third essay - "Liquidity Constraint Volatility: Evidence from Post-war Aggregate Time-series Data" - are tests of the importance and persistence of liquidity constraints in determining consumption behavior in the United States using micro-based data and aggregate timeseries data, respectively. / Thesis (PhD) — Boston College, 1988. / Submitted to: Boston College. Graduate School of Arts and Sciences. / Discipline: Economics.

This dissertation contains four essays and is focused on evaluating, and to a lesser degree, extending, theories on monopoly and oligopoly pricing. The data in all of the essays originates from the Swedish daily newspaper markets."Pricing Contracts With Different Duration: The Role of Switching Costs" analyzes how prices of contracts with different duration are affected by the degree of "lock-in". We extend a model by Glazer and Hassin (1982) by adding switching cost. We use the daily newspaper data to test propositions from the model. The essay also analyzes the use of second-degree price discrimination, in the form of different contract durations, by newspapers, and finds that more competition yields more  discrimination. "Prices, Margins and Liquidity Constraints: Swedish Newspapers 1990-1996" analyzes an example of how the financial situation of firms may affect their product market pricing decisions. When consumers have switching costs, they are to some extent "locked in" and can be exploited. If a firm finds itself in financial distress it may have to resort to raising prices to cover short run expenses, thus sacrificing long run profits. This effect is found in subscription markets but not in advertising markets where consumers do not have switching costs. "Pricing Pre-Announcements and Price Leadership in the Swedish Daily Newspaper Industry" analyzes the publication of prices and price-setting behavior in the advertising markets. We find that large price increases and price cuts are published earlier. Duopolies exhibit publication behavior that differs from monopolies. Price leadership is prevalent in many of the duopoly markets and the price leadership observed in these markets is likely to be barometric. "Third-Degree Price Discrimination in Oligopoly: Evidence from Swedish Newspapers" addresses the question of how competition affects the use of third-degree price discrimination. We study the discounting behavior in subscription markets and find that duopolies and firms with weak market positions use more third-degree price discrimination. There is some indication that large immigration to the market and the firm being present in a large number of markets increases the use of discounts. / <p>Diss. (sammanfattning) Stockholm : Handelshögskolan, 2001</p>

<p>Essay 1: Hurst and Lusardi (2004) use higher-order polynomials in wealth in estimating the relationship with entrepreneurship. They find evidence conflicting with the existence of extensive liquidity constraints in the United States. In this paper, their approach is replicated on Swedish data. A positive relationship between wealth and entrepreneurship is found, which supports the liquidity constraints hypothesis. Alternative methods attempting to handle the endogeneity problem and distinguish between absolute decreasing risk aversion and liquidity constraints give further support to the hypothesis. The paper suggests that there exist liquidity constraints in Sweden, which are possibly more extensive than in the United States.</p><p>Essay 2: Displacement is expected to decrease the reservation wage of self-employment by decreasing earnings in paid employment and increasing the probability of unemployment. This paper examines whether displacement increases the probability of self-employment using propensity score matching on Swedish register-based data. The data include all individuals displaced due to plant closures in 1987 and 1988, and a random sample of 200,000 employed individuals. The results suggest that displacement almost doubles the probability of entering self-employment the year after displacement. A sub-sample analysis indicates that individuals with a potentially worse position on the labor market react more strongly to displacement in terms of entering self-employment.</p><p>Essay 3: A large literature has studied the effect of displacement on labor market outcomes in general, but no one has evaluated how the displaced succeed as self-employed. This paper studies how the survival of the business is affected by displacement in connection to entry, using a discrete-time proportional hazard model on a matched sample of displaced and non-displaced individuals. The main result of the paper is that, as a consequence of previous displacement, the probability of switching from self-employment to paid employment decreases and the probability of switching to unemployment is unaffected.</p>

Essay 1: Hurst and Lusardi (2004) use higher-order polynomials in wealth in estimating the relationship with entrepreneurship. They find evidence conflicting with the existence of extensive liquidity constraints in the United States. In this paper, their approach is replicated on Swedish data. A positive relationship between wealth and entrepreneurship is found, which supports the liquidity constraints hypothesis. Alternative methods attempting to handle the endogeneity problem and distinguish between absolute decreasing risk aversion and liquidity constraints give further support to the hypothesis. The paper suggests that there exist liquidity constraints in Sweden, which are possibly more extensive than in the United States. Essay 2: Displacement is expected to decrease the reservation wage of self-employment by decreasing earnings in paid employment and increasing the probability of unemployment. This paper examines whether displacement increases the probability of self-employment using propensity score matching on Swedish register-based data. The data include all individuals displaced due to plant closures in 1987 and 1988, and a random sample of 200,000 employed individuals. The results suggest that displacement almost doubles the probability of entering self-employment the year after displacement. A sub-sample analysis indicates that individuals with a potentially worse position on the labor market react more strongly to displacement in terms of entering self-employment. Essay 3: A large literature has studied the effect of displacement on labor market outcomes in general, but no one has evaluated how the displaced succeed as self-employed. This paper studies how the survival of the business is affected by displacement in connection to entry, using a discrete-time proportional hazard model on a matched sample of displaced and non-displaced individuals. The main result of the paper is that, as a consequence of previous displacement, the probability of switching from self-employment to paid employment decreases and the probability of switching to unemployment is unaffected.

Introduction: A general guideline was introduced on October first 2010 regarding a mortgage cap, limiting the degree of leverage of housing as collateral. Through the new guidelines the marked conditions concerning consumers’ choice of mortgage has changed. The consumers are limited in the sense that they can’t only use mortgage when purchasing a house. In this context there is a higher burden on the consumers in different aspects. In this study we intend to investigate how the consumers’ conditions affect choice of financing option when buying a home. Purpose: The study aims to highlight how consumers situation affect the choice of financing option. Furthermore, the study intends to describe the consumer’s choice of financing. That is how the consumer approaches the purchase with the mortgage cap of 85 per cent. Method: For the study, we have used a quantitative research method. The starting point has been a deductive study, where we from theory collect empirical data. In the collection of empirical data we used a convenience sample. Theory: The study’s frame of reference includes a description of the financing options that consumers can use. Further, how the decision-making process appears in the choice of financing a house purchase as well as how socio-demographic factors; age, income and family affect the process and choice of financing. Conclusion: The study shows that age and income are the two socio-demographic factorsthat have the greatest impact on consumer choice of option in the decision-makingprocess. Further, data from the study shows that mortgage and own savings are the mostrecurring funding option that consumers use. In the use of private loans, we see thatconsumers’ families have a great influence, since the majority have received private loansfrom their parents. Similar relationship can be seen in the usage of guarantor. Forunsecured debt, we see that the use is concentrated among younger consumers.

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Optimisation des modèles d'évaluation et de couverture d'options financières sous contraintes de liquidité / Optimization of pricing and hedging models for financial options under liquidity constraints