Wishart, David2011-08-032011-08-032011-08-03http://hdl.handle.net/10222/13977Using permanent income life-cycle theory, I analyze the effects of liquidity constraints on the household’s ability to smooth life time consumption due to a change in housing and stock market wealth. Using data from the Canadian national accounts and chartered bank balance sheets I test if improved access to housing wealth due to fundamental shifts to the banking industry in the 1980s has lowered liquidity constraints and improved the household’s ability to smooth consumption.enDebtWealthLiquidityConstraintsConsumption