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- Title
An Analysis of the Impact of Interest Rate Ceilings.
- Authors
VILLEGAS, DANIEL J.
- Abstract
The first aim of this study is to estimate the interest rates paid for motor vehicle loans. The second aim is to identify those potential borrowers most likely to be rationed out of the market by the imposition of rate ceilings. Rate ceilings constrain the rates paid by successful loan applicants to be no greater than the applicable ceiling level. These constraints are dealt with by treating the interest rate paid as a variable truncated at the ceiling level. Assuming the dependent variable is truncated normal, consistent estimates are obtained by employing the maximum likelihood method of Hausman and Wise.
- Subjects
MOTOR vehicles; LOANS; INTEREST rates; PERSONAL loans; CONSUMER credit; PERSONAL finance; FINANCE; AUTOMOBILE industry; MONETARY policy; VARIABLE interest rates; MATHEMATICAL models; ECONOMICS
- Publication
Journal of Finance (Wiley-Blackwell), 1982, Vol 37, Issue 4, p941
- ISSN
0022-1082
- Publication type
Article
- DOI
10.1111/j.1540-6261.1982.tb03590.x