Social and Behavioral Sciences Commons^™

Long-Run Debt-Income Model Of Consumer Installment Credit, Tseng Ho Wong

Masters Theses

In the late forties and early fifties concern emerged in some economic circles because installment debt was growing more rapidly than income. Overextensions of debt in the long run were believed to jeopardize future prosperity of the economy. To demonstrate that the rate of growth of debt would not threaten future prosperity, A. Enthoven designed a debt-income growth model. Michael K. Evans reaffirmed Enthoven's conclusions in a later study. However, in 1964 and 1967, the model and its assumptions were attacked by Oliver and Chiu and Brosky, respectively.

This study tests again Enthoven's model and its assumptions using up-to-date data. …