The Relationship Between Consumer Banking and Income Elasticity:A Study on Credit Cards, Cash Cards and Credit Loan in Taiwan
Previous studies of the elasticity of demand focused on the price elasticity of general commodity. No researcher has defined the goods of financial services, which are non-entity products, in terms of consumer financial products. The aim of this paper is to present an empirical model to discuss the income elasticity of consumer financial products. A secondary database, from June 2004 to December 2009, is used to examine the influence of income elasticity on credit cards, cash cards, and credit loan before and after the onset of the financial tsunami. This paper employs the multiple regression models to conduct the empirical analyses. The results showed that the variable of income doesnt have significant effect on the dependent variable in all models. This study also found that credit card, cash card and credit loan are all negatively related to the financial tsunami. However, the correlation becomes positive after considering the initial income variables interaction. The banks tighten credit is probably the main reason to account for the imbalance between the supply and demand. According to the simple regression model of income elasticity, credit card, cash card and credit loan all satisfy the definition of inferior goods. The income elasticity becomes smaller after the financial tsunami.
Financial Tsunami Income Elasticity Inferior Goods Multiple Regression Model
Ying-Shu Hung Hsin-Hong Kang Shuang-Shii Chuang
Management school of National Cheng Kung University Tainan, Taiwan
国际会议
上海
英文
244-248
2011-03-11（万方平台首次上网日期，不代表论文的发表时间）