Article(electronic)February 1999
Asset Portfolios and Credit Rationing: Evidence from Kenya
In: Economica, Volume 66, Issue 261, p. 97-117
Checking availability at your location
This article is also available at your library: |
electronic
print
Abstract
This paper presents a model of the private sector's demand for financial and real assets in Kenya for the period 1973–90. The private sector is assumed to hold its wealth in terms of five assets but is quantity‐rationed in the credit market. The model is estimated as a co‐integrated demand system, based on the almost‐ideal demand system of Deaton and Muellbauer (1980). The model highlights the role of real asset accumulation in offering a hedge against inflation and the role of credit rationing in the composition of wealth.
Report Issue