@article{346e3e5540d848cc823affd3d0b0a31c,
title = "Consumption, leisure and earnings-related liquidity constraints: A note",
abstract = "The life-cycle model with liquidity constraints produces a Euler equation with unobservable Kuhn-Tucker multipliers. If borrowing restrictions depend on earnings, preferences are non-separable between goods and leisure, and individuals are employed, we derive a Euler equation involving only observable variables.",
author = "Rob Alessie and Bertrand Melenberg and Guglielmo Weber",
note = "Funding Information: * The results in thts note were independently derived by G. Weber and by R. Alessie and B. Melenberg. R. Alessie and B. Melenberg wish to thank A. Kapteyn and Th. Nijman for valuable comments and R. Alessie gratefully acknowledges the Netherlands Organization for the Advancement of Pure Research and the NMB Bank in the Netherlands for financial support. G. Weber is grateful for helpful discussions with M. Browning and F. Schiantarelli.",
year = "1988",
doi = "10.1016/0165-1765(88)90227-3",
language = "English",
volume = "27",
pages = "101--104",
journal = "Economics Letters",
issn = "0165-1765",
publisher = "Elsevier Science",
number = "1",
}