Journal articles: 'Household debt'

1

Li, Jiajing, Chen Jiao, Stephen Nicholas, Jian Wang, Gong Chen, and Jinghua Chang. "Impact of Medical Debt on the Financial Welfare of Middle- and Low-Income Families across China." International Journal of Environmental Research and Public Health 17, no. 12 (June 26, 2020): 4597. http://dx.doi.org/10.3390/ijerph17124597.

Full text

Abstract:

Background: Medical debt is a persistent global issue and a crucial and effective indicator of long-term family medical financial burden. This paper fills a research gap on the incidence and causes of medical debt in Chinese low- and middle-income households. Method: Data were obtained from the 2015 China Household Finance Survey, with medical debt measured as borrowings from families, friends and third parties. Tobit regression models were used to analyze the data. The concentration index was employed to measure the extent of socioeconomic inequality in medical debt incidence. Results: We found that 2.42% of middle-income families had medical debt, averaging US$6278.25, or 0.56 times average household yearly income and 3.92% of low-income families had medical debts averaging US$5419.88, which was equivalent to 2.49 times average household yearly income. The concentration index for low and middle-income families’ medical debt was significantly pro-poor. Medical debt impoverished about 10% of all non-poverty households and pushed poverty households deeper into poverty. While catastrophic health expenditure (CHE) was the single most important factor in medical debt, age, education, and health status of householder, hospitalization and types of medical insurance were also significant factors determining medical debt. Conclusions: Using a narrow definition of medical debt, the incidence of medical debt in Chinese low- and middle-income households was relatively low. But, once medical debt happened, it imposed a long-term financial burden on medical indebted families, tipping many low and middle-income households into poverty and imposing on households several years of debt repayments. Further studies need to use broader definitions of medical debt to better assess the long-term financial impact of medical debt on Chinese families. Policy makers need to modify China’s basic medical insurance schemes to manage out-of-pocket, medical debt and CHE and to take account of pre-existing medical debt.

APA, Harvard, Vancouver, ISO, and other styles

2

Bednarzik, Robert, Andreas Kern, and John Hisnanick. "Displacement and debt – the role of debt in returning to work after displacement." Journal of Financial Economic Policy 13, no. 5 (April 8, 2021): 600–650. http://dx.doi.org/10.1108/jfep-07-2020-0160.

Full text

Abstract:

Purpose This paper aims to analyze the question of how household indebtedness impacts households’ incentives to search for and accept work after displacement. Design/methodology/approach To analyze the relationship between household indebtedness and unemployment duration, this paper applies standard proportional hazard models. For data, this paper relies on the longitudinal US National Survey of Income and Program Participation (SIPP), covering the period between 2008 and 2012. Findings The findings show that a 10% increase in household debt increases the likelihood (hazard) of leaving unemployment by 0.2%–0.4% points. Independent of measuring a household's indebtedness and in light of a series of robustness tests, the results indicate that the pressure of servicing an existing debt burden forces individuals to return to work. Social implications From a policy perspective, the research findings support the notion that household indebtedness plays an important mediating role for labor market outcomes through influencing households’ incentives to return to work after displacement. This finding has important implications for the design of effective policy responses to mass layoffs during the current pandemic. Originality/value A key innovation of the research is that we can show that household indebtedness impacts the labor supply side. From a macroeconomic perspective, this insight is important in better understanding the role of increased indebtedness (and financialization) in amplifying aggregate macroeconomic dynamics.

APA, Harvard, Vancouver, ISO, and other styles

3

Gibbons, Damon. "Unsustainable Household Debt: Problems of Measurement." Vierteljahrshefte zur Wirtschaftsforschung 89, no. 1 (January 1, 2020): 101–14. http://dx.doi.org/10.3790/vjh.89.1.101.

Full text

Abstract:

Summary: In the wake of the Global Financial Crisis, a significant research effort has been made to better understand the links between household debt levels, financial stability risks, and the ongoing implications of the ‘debt overhang’ for economic growth. However, accurately measuring the household debt burden remains problematic. Aggregate measures of household indebtedness (e. g. household liabilities relative to income) fail to fully capture the debt servicing burdens of households, particularly in periods when real incomes are declining (as has been the case in the UK in recent years). They also provide no insight into the distribution of debt burdens, which may be important for both future financial stability and economic growth. We attempt to address this problem by combining a new analysis of aggregate data with insights gleaned from household debt surveys. We first construct a new measure of debt interest payments as a percentage of the overall household surplus from the aggregate data. This indicates a significant increase in household debt burdens between 2016 and 2018. We test the validity of this measure by analysing household debt surveys over the period, and report on the most affected households. The findings support a case for a lowering of the thresholds used in official measures of financial vulnerability and over-indebtedness and for greater impetus in policymaking to relieve the financial pressures of households in debt.

APA, Harvard, Vancouver, ISO, and other styles

4

Hong, Cancheng, Di He, and Ting Ren. "The Impact of Commercial Medical Insurance Participation on Household Debt." Sustainability 15, no. 2 (January 12, 2023): 1526. http://dx.doi.org/10.3390/su15021526.

Full text

Abstract:

Household debt is an important part of household financial decision-making, and commercial medical insurance has gradually become an important tool for households to use in improving their household balance sheets. Based on 2017 China Household Finance Survey (CHFS) data, this paper studies the impact of commercial medical insurance participation on household debt and analyzes the heterogeneity of household conditions, such as the location of the household, the age of the household head, and the health status of members. The study found that households participating in commercial medical insurance are more likely to be indebted, and their degree of debt is higher than that of households without commercial medical insurance. For urban households, young households, and households with healthy members, the participation of commercial medical insurance has a high effect on the likelihood and the degree of debt. Therefore, while strengthening household insurance awareness, the government should promote the strengthening of the risk-resistance function of commercial medical insurance and encourage financial institutions to design products that combine insurance and credit to release households’ consumption and investment potential.

APA, Harvard, Vancouver, ISO, and other styles

5

Yoshino, Naoyuki, and Prachi Gupta. "How to Avoid Household Debt Overhang?: An Analytical Framework and Analysis for India." International Review of Financial Consumers 5, No. 1 Apr 2020 (July 1, 2020): 1–12. http://dx.doi.org/10.36544/irfc.2020.5-1.1.

Full text

Abstract:

In this paper we develop an analytical framework using the household utility maximization approach to model stability conditions to avoid household debt overhang. Our theoretical framework suggests that household debt stability is a function of five factors, namely the rate of interest, period of lending, income growth, loan-to-income ratio, and households’ disutility from borrowing. Further, we apply our analytical model to the case of India and estimate household debt stability conditions for Indian households under various scenarios to estimate the ceiling borrowing ratios below which households can avoid the risk of running into a debt overhang problem.

APA, Harvard, Vancouver, ISO, and other styles

6

Maneejuk, Paravee, Sopanid Teerachai, Atinuch Ratchakit, and Woraphon Yamaka. "Analysis of Difference in Household Debt across Regions of Thailand." Sustainability 13, no. 21 (November 6, 2021): 12253. http://dx.doi.org/10.3390/su132112253.

Full text

Abstract:

This study analyzed the determinants of household debt in Thailand at both the regional and the national levels using the panel data of 76 provinces over the years 2009–2017. The Panel Quantile Regression Model was employed to enable the analysis of the formation of household debt ranging from low to high levels. The findings indicate that household indebtedness in different regions has been shaped by a variety of factors, and that households in the same region with different levels of debt burden would experience different impacts or outcomes. We also tested the convergence of household debt, which produced the thought-provoking finding that household debt convergence failed to occur at both the national and the regional levels, while household debt divergence was found instead at the statistical significance level in some regions. The growing debt divergence phenomenon might be an outcome indicator of the unequal access to credit sources among different households in Thai society.

APA, Harvard, Vancouver, ISO, and other styles

7

Zauder, Krunoslav, and Mate Rosan. "Which Loans Do We Take? A Micro-Level Analysis of Croatian Households' Debt Participation." Croatia Economic Survey 24, no. 1 (June 15, 2022): 5–41. http://dx.doi.org/10.15179/ces.24.1.1.

Full text

Abstract:

This paper uses a new data set in order to explore micro-level patterns of household borrowing in Croatia. By analyzing cross-section data from the Household Finance and Consumption Survey, conducted for the first time in Croatia in 2017, we present the structure of household debt holdings and identify several household characteristics associated with debt participation in three types of bank debt: secured debt, non-collateralized loans, as well as overdrafts and/ or credit card debt. Our results indicate that: a) households with middle-aged heads tend to participate more and hold larger amounts of all three debt types; b) credit constrained households are more likely to take non-collateralized loans; c) inability to finance consumption and willingness to take risks when making saving and investment decisions contribute to participation in overdrafts and/or credit card debt.

APA, Harvard, Vancouver, ISO, and other styles

8

Kolios, Bill. "Australian household debt and the macroeconomic environment." Journal of Economic Studies 48, no. 1 (April 29, 2020): 21–34. http://dx.doi.org/10.1108/jes-10-2019-0460.

Full text

Abstract:

PurposeThis paper aims to investigate the effect of labour market conditions and monetary policy on households' attitude towards debt in the Australian context.Design/methodology/approachIn doing so, household debt is categorised into housing, and consumer debt and the relationship is empirically tested through the use of a vector error correction model.FindingsConsumer debt is found to be highly dependent on consumption with employment income and unemployment having a statistically insignificant effect, whilst monetary policy showing an inverse relation to consumer debt. The findings suggest that household consumption appears to be the primary determinant for consumer debt, which then behaves as a wage substitute. In terms of housing debt, income and monetary policy positively affect households' decisions with consumption and unemployment having a negative impact on the level of housing debt. The empirical results suggest that housing debt behaves as a proxy for household investment.Originality/valueThis paper empirically investigates the impact of selected macroeconomic variables on housing and personal debt separately. The findings suggest that monetary policy and labour market conditions have different impacts on the two separate debt types.

APA, Harvard, Vancouver, ISO, and other styles

9

Mainal, Siti Aminah, Catherine S. F. Ho, and Jamaliah Mohd Yusof. "Post Financial Crisis and Macroeconomic Fundamentals on Household Debt in Advanced Economies." Journal of Finance and Banking Review Vol. 2 (3) Jul-Sep 2017 2, no. 3 (June 16, 2017): 36–41. http://dx.doi.org/10.35609/jfbr.2017.2.3(6).

Full text

Abstract:

Objective - The unwarranted household debt initiated the global financial crisis which led to severe worldwide financial instability. Deleveraging process which has been taking place since the crisis has been slow and there is no quick fix to the debt issue. The lack of study on the effect of financial crisis on household debt justifies the objective to investigate macroeconomic fundamentals and financial crisis on household debt. Methodology/Technique - This study applies panel data analysis in ten advanced economies from 2001 to 2013. The random effect (RE) generalized least square estimator is used in the regression to examine macroeconomic factors and post financial crisis period as control variable on household debt. Findings - Findings confirm that post financial crisis period has significant negative effect on household debt which affirmed the deleveraging process in most advanced economies. Economic growth and household disposable income too have negative relation with household debt. Nonetheless, macroeconomic factors such as inflation, housing price and household consumption encourage household debt in advanced economies. Novelty - This study suggests that empirical evidence support that household avert from borrowing post financial crisis. Intensification of housing price and other consumption expenditure, if left unrestrained, may elicit another debt crisis. These are challenges faced by policy makers to curb household debt which entail risks for households, the financial system and the wider economy. Type of Paper: Empirical Keywords: Household Debt; Post Financial Crisis; Macroeconomic Factors. JEL Classification: G01, G02.

APA, Harvard, Vancouver, ISO, and other styles

10

Mainal, Siti Aminah, Catherine S. F. Ho, and Jamaliah Mohd Yusof. "Household Behavior towards Debt in a Challenging Financial Environment: Malaysian evidence." Environment-Behaviour Proceedings Journal 1, no. 1 (June 26, 2016): 239. http://dx.doi.org/10.21834/e-bpj.v1i1.220.

Full text

Abstract:

The study of household behavior towards debt is important in this challenging financial environment. Escalating household debt can cause social and economic problems. For the past few years, Malaysia has emerged as the country with the highest household debt in the ASEAN region. This study aims to examine the predictors of intention to incur household debt among Malaysian households. Analysis on 100 fully completed and operational questionnaires in the preliminary study revealed financial literacy and subjective norm as significant predictors of attitude and the mediating relationship between attitude and intention to incur household debt was found to be negatively significant.© 2016. The Authors. Published for AMER ABRA by e-International Publishing House, Ltd., UK. Peer–review under responsibility of AMER (Association of Malaysian Environment-Behaviour Researchers), ABRA (Association of Behavioural Researchers on Asians) and cE-Bs (Centre for Environment-Behaviour Studies, Faculty of Architecture, Planning & Surveying, Universiti Teknologi MARA, Malaysia.Keywords: Household behavior; household debt; financial environment; financial literacy

APA, Harvard, Vancouver, ISO, and other styles

11

Tahir, Muhammad S., and Abdullahi D. Ahmed. "Australians’ Financial Wellbeing and Household Debt: A Panel Analysis." Journal of Risk and Financial Management 14, no. 11 (October 26, 2021): 513. http://dx.doi.org/10.3390/jrfm14110513.

Full text

Abstract:

“An excess of everything is bad”. This famous old proverb fits well with the current condition of Australian household debt that is continuously rising. Research in Australia’s household indebtedness is scarce and strategies to control the rising household debt remain contentious. The government of Australia has introduced financial literacy and financial capability measures to help control the rising household debt. Given that the literature highlights the importance of improving financial wellbeing, we analyse if financial wellbeing is a factor, which could be relevant to the reduced household debt. We use the Household, Income and Labour Dynamics in Australia panel survey in our analysis and find that improved financial wellbeing is associated with the reduced debt-taking behaviour of Australians. Our robust analysis confirms our findings. Finally, our empirical results suggest that improving households’ perception of their personal financial situation can bring improvement in their financial decisions, including the decision to take on debt.

APA, Harvard, Vancouver, ISO, and other styles

12

Nkala, Patience, and Asrat Tsegaye. "The Relationship between Household Debt and Consumption Spending in South Africa." Journal of Economics and Behavioral Studies 9, no. 2(J) (May 18, 2017): 243–57. http://dx.doi.org/10.22610/jebs.v9i2(j).1665.

Full text

Abstract:

Consumption has been and remains the main contributor to gross domestic product (GDP) growth in South Africa. Household debt on the other side has remained high over the years. These two economic indicators are a reflection of the well-being of an economy. This study thus examined the relationship between household debt and consumption spending, for the period between 1994 and 2013. The Johansen cointegration technique and the Vector error correction model (VECM) were utilised to test the long run and short run relationships between the variables. The Granger causality test was also employed to test the direction of causality between the variables. Results from this study have revealed that a relationship exists between household debt and consumption spending in South Africa and they have also showed that this relationship flows from household debt to consumption spending. The implications of these results are that consumption spending may be increased through other measures rather than through increasing debt. The study therefore recommends that policy makers avail more investment opportunities for households and to also create employment in a bid to increase the income of households which can then be used to increase household consumption rather than the use of debt.

APA, Harvard, Vancouver, ISO, and other styles

13

Nkala, Patience, and Asrat Tsegaye. "The Relationship between Household Debt and Consumption Spending in South Africa." Journal of Economics and Behavioral Studies 9, no. 2 (May 18, 2017): 243. http://dx.doi.org/10.22610/jebs.v9i2.1665.

Full text

Abstract:

Consumption has been and remains the main contributor to gross domestic product (GDP) growth in South Africa. Household debt on the other side has remained high over the years. These two economic indicators are a reflection of the well-being of an economy. This study thus examined the relationship between household debt and consumption spending, for the period between 1994 and 2013. The Johansen cointegration technique and the Vector error correction model (VECM) were utilised to test the long run and short run relationships between the variables. The Granger causality test was also employed to test the direction of causality between the variables. Results from this study have revealed that a relationship exists between household debt and consumption spending in South Africa and they have also showed that this relationship flows from household debt to consumption spending. The implications of these results are that consumption spending may be increased through other measures rather than through increasing debt. The study therefore recommends that policy makers avail more investment opportunities for households and to also create employment in a bid to increase the income of households which can then be used to increase household consumption rather than the use of debt.

APA, Harvard, Vancouver, ISO, and other styles

14

Mainal, Siti Aminah, Catherine S. F. Ho, and Jamaliah Mohd Yusof. "Household Behavior towards Debt in a Challenging Financial Environment in Malaysia." Asian Journal of Behavioural Studies 2, no. 7 (July 1, 2017): 21. http://dx.doi.org/10.21834/ajbes.v2i7.39.

Full text

Abstract:

The study of household behaviour towards debt is important in this challenging financial environment. Escalating household debt can cause social and economic problems. For the past few years Malaysia has emerged as the highest household debt country in the ASEAN region. Therefore this study aims to examine the predictors of intention to incur household debt among Malaysian households. Analysis on 100 usable questionnaires in the pilot study revealed financial literacy and subjective norm as significant predictors of attitude and the mediating relationship between attitude and intention to incur on household debt was found to be negatively significant.Keywords: Household behaviour; household debt; financial environment; financial literacy2398-4295 © 2017 The Authors. Published for AMER ABRA by e-International Publishing House, Ltd., UK. This is an open access article under the CC BY-NC-ND license (http://creativecommons.org/licenses/by-nc-nd/4.0/). Peer–review under responsibility of AMER (Association of Malaysian Environment-Behaviour Researchers), ABRA (Association of Behavioural Researchers on Asians) and cE-Bs (Centre for Environment-Behaviour Studies), Faculty of Architecture, Planning & Surveying, UniversitiTeknologi MARA, Malaysia.

APA, Harvard, Vancouver, ISO, and other styles

15

Song, Jiru, Mingzheng Hu, Shaojie Li, and Xin Ye. "The Impact Mechanism of Household Financial Debt on Physical Health in China." International Journal of Environmental Research and Public Health 20, no. 5 (March 6, 2023): 4643. http://dx.doi.org/10.3390/ijerph20054643.

Full text

Abstract:

In recent years, Chinese household financial debt has been growing rapidly due to the expansion of mortgage lending. This study aims to examine the impact mechanism of Chinese household financial debt on physical health. Using the 2010–2018 China Household Tracking Survey (CFPS) panel data, we developed fixed effects models to explore the effect of household financial debt on individuals’ psychical health, and we also used an instrumental variable to address endogeneity. The findings suggest that there is a negative effect of household financial debt on physical health and these findings still hold after a series of robustness tests. In addition, household financial debt can affect individuals’ physical health through mediating variables, such as healthcare behaviors and mental health, and the effects are more significant for those who are middle-aged, married, and with low-income levels. The findings of this paper are important for developing countries to clarify the relationship between household financial debt and population health, and to develop appropriate health intervention policies for highly indebted households.

APA, Harvard, Vancouver, ISO, and other styles

16

Sánchez-Martínez, M. Teresa, Jose Sanchez-Campillo, and Dolores Moreno-Herrero. "Mortgage debt and household vulnerability." International Journal of Housing Markets and Analysis 9, no. 3 (August 1, 2016): 400–420. http://dx.doi.org/10.1108/ijhma-07-2015-0038.

Full text

Abstract:

Purpose This paper aims to study the financial vulnerability of the Spanish households derived from their primary residence mortgage debt payments. This paper shown as the economic and financial crisis triggered after the burst of the housing bubble brought an unemployment shock and a fall in the disposable family income, which alarmingly aggravated the financial vulnerability of the mortgaged households. Consequently, the number of financially vulnerable households almost doubled. Design/methodology/approach Econometric model of discrete election. Findings The most vulnerable households – and therefore those with a higher risk of mortgage payment default – are those whose family head is a married and self-employed female. In contrast, in social housing the mortgaged households have been less vulnerable in the context of economic and financial crisis and unlike what would have been initially expected, higher education levels have not acted as a protective factor against households’ financial vulnerability. Originality/value There is a great need to understand how the financial health of the mortgaged families that bought their primary residence has deteriorated in a context of significant changes in macroeconomic conditions. This need is specially pressing in a country such as Spain which is one of the OECD’s countries with a higher rate of household property and which shows a sector of highly mortgaged households.

APA, Harvard, Vancouver, ISO, and other styles

17

Meng, Xianming, Mahinda Siriwardana, and Judith McNeill. "The Causes of Rising Australian Household Debt." International Journal of Trade, Economics and Finance 6, no. 5 (October 2015): 247–53. http://dx.doi.org/10.18178/ijtef.2015.6.5.477.

Full text

APA, Harvard, Vancouver, ISO, and other styles

18

Wood, James DG. "Can household debt influence income inequality? Evidence from Britain: 1966–2016." British Journal of Politics and International Relations 22, no. 1 (November 14, 2019): 24–46. http://dx.doi.org/10.1177/1369148119888830.

Full text

Abstract:

The various processes of financialisation widen inequalities by increasing incomes for financial sector employees and shareholders, as well as affluent households who hold the concentrated ownership of financial assets. Although interest payments provide a flow of revenue from indebted households to financial institutions, the distributional consequences of such debt-based systems of financialisation remain an under-explored research area. As the financialisation of the British economy has been driven by the widespread adoption of private debt, this econometric analysis examined the effects of changes in household debt on income inequality in Britain between 1966 and 2016. These results demonstrate household debt increases the share of income captured at the top of the income distribution, while increasing inequality between the top and the middle of the income scale. Therefore, the mundane decision to take on household debt has significant distributional consequences, specifically entrenching pre-existing disparate social relations between affluent and less-affluent households in Britain.

APA, Harvard, Vancouver, ISO, and other styles

19

Kata, Ryszard, and Justyna Chmiel. "Household financialization – sense and scale of this phenomenon on the example of poland." e-Finanse 13, no. 2 (December 1, 2017): 62–74. http://dx.doi.org/10.1515/fiqf-2016-0023.

Full text

Abstract:

AbstractThe subject of the study is the phenomenon of household financialization. In the first part of the article a sense of this situation and its influence on the different functioning areas of the households (income, expenses, financial decisions) is described. What is more, the positive and negative effects of this process for the households’ financial stability were defined. The next part of the article contains an analysis of the households financialization processes in Poland in the years 2005-2015. On the side of household savings, the analysis included the level and the structure of financial assets. The second area of evaluation of the household financialization processes was bank debt analysis, including mortgage debt. In the elaboration comparative analysis was used, which means that Polish household structure of financial assets and the level of debt were compared to the European Union countries.

APA, Harvard, Vancouver, ISO, and other styles

20

Foster, John Bellamy. "The Household Debt Bubble." Monthly Review 58, no. 1 (May 1, 2006): 1. http://dx.doi.org/10.14452/mr-058-01-2006-05_1.

Full text

APA, Harvard, Vancouver, ISO, and other styles

21

Atalay, By Kadir, Garry F. Barrett, Rebecca Edwards, and Chaoran Yu. "House Price Shocks, Credit Constraints and Household Indebtedness." Oxford Economic Papers 72, no. 3 (May 18, 2020): 780–803. http://dx.doi.org/10.1093/oep/gpaa017.

Full text

Abstract:

Abstract We analyse the effect of housing wealth on household indebtedness in a life-cycle framework. Exploiting longitudinal household data and temporal and geographic variation in house prices, our empirical results indicate that households respond to increases in housing wealth by significantly increasing their debt. The effect is strongest for households that are moderately leveraged, highlighting the importance of collateral constraints. Furthermore, we uncover a weaker wealth effect from house price growth for households that have faced negative shocks to income or employment. Importantly, our findings are consistent with the theoretical predictions of the life-cycle model: households increase their mortgage debt, but not their unsecured credit card debt. A novel finding is that we uncover a moderate positive wealth effect on investment loans.

APA, Harvard, Vancouver, ISO, and other styles

22

Korzeniowska, Anna M. "Sources of Financing of Household Debt in Poland." Folia Oeconomica Stetinensia 19, no. 2 (December 1, 2019): 56–67. http://dx.doi.org/10.2478/foli-2019-0013.

Full text

Abstract:

Abstract Research background: This paper analyses the inter-relationships between the sources of financing households’ and the debt burden of indebted households. Purpose: The aim of the paper is to find out inter-relationships between the sources of financing debt and its burden among indebted households. Research Methodology: The research is divided into two parts. The first represents household debt in Poland in comparison to Euro area countries on the basis of the Households Finance and Consumption Survey. The second analyses are the data collected by the questionnaire at the beginning of 2018 in the Lubelskie voivodeship using the Tau b Kendall coefficient. Results: The analysis shows that households in the Lubelskie voivodeship focus their debt on financing their housing and consumption needs, whereby the main source of obtaining credit is commercial banks. However, there is a real risk observed in the concentration of loans in parabanks in general and in the need to use low private loans. Novelty: The findings show that the picture of household debt requires a thorough analysis in different contexts, as from an initial examination the situation looks relatively good, but when analysing more deeply and dividing households into separate groups with similar characteristics, we find considerable varied problems influencing households’ financial situations and raising the risk following their indebtedness.

APA, Harvard, Vancouver, ISO, and other styles

23

Coibion, Olivier, Yuriy Gorodnichenko, Marianna Kudlyak, and John Mondragon. "Greater Inequality and Household Borrowing: New Evidence from Household Data." Journal of the European Economic Association 18, no. 6 (January 6, 2020): 2922–71. http://dx.doi.org/10.1093/jeea/jvz076.

Full text

Abstract:

Abstract Using household-level debt data over 2000–2012 and local variation in inequality, we show that low-income households in high-inequality regions (zip codes, counties, states) accumulated less debt relative to their income than low-income households in lower inequality regions. We also find evidence that low-income households face higher credit prices and reduced access to credit as inequality increases. We argue that these patterns are consistent with inequality tilting credit supply away from low-income households and toward high-income households, which may have long-run implications for outcomes like homeownership or entrepreneurship.

APA, Harvard, Vancouver, ISO, and other styles

24

Yunchao, Cai, Selamah Abdullah Yusof, Ruzita Bt Mohd Amin, and Mohd Nahar Mohd Arshad. "The Association Between Household Debt and Marriage Satisfaction in the Context of Urban Household in Klang Valley Malaysia." Journal of Emerging Economies and Islamic Research 8, no. 1 (January 31, 2020): 12. http://dx.doi.org/10.24191/jeeir.v8i1.7122.

Full text

Abstract:

By using the data collected from urban households in Klang Valley, Malaysia, this study tries to provide empirical evidence on the effect of household debt on married Malaysian couples on their marital satisfaction. This study wishes to extend the implications of household debt in Malaysia beyond economic concern per se. We found that household debt does have a negative association with marriage satisfaction for married couples in Klang Valley Malaysia. Such relationship is valid even financial wellness and other demographic variables are controlled. Moreover, the less secured personal debt shows a significant negative relationship with the couple’s marriage satisfaction compared with no evidence on the impact of housing loan and vehicle loan.

APA, Harvard, Vancouver, ISO, and other styles

25

Roza Hazli Zakaria, Nor Ismawati Mohd Jaafar, and Nur Annizah Ishak. "Household Debt Decision: Poverty or Psychology?" International Journal of Business and Society 18, no. 3 (December 31, 2017): 515–32. http://dx.doi.org/10.33736/ijbs.3143.2017.

Full text

Abstract:

This study is motivated by the growing concern with the increase in the level of household debt, particularly in Malaysia. One of the debated issues is whether household borrowings are related to poverty factors or due to psychological factors. This study approaches this issue by taking into account the factors as proposed by conventional (Life Cycle Hypothesis) and heterodox (Relative Income Hypothesis) economic theories. The data presented is micro level data collected from a self-administered survey among urban working class in Klang Valley. We find no conclusive evidence supporting the conventional theory, since though age is statistically significant, yet future income expectations are not. The findings also suggested that household debt is not a poverty related phenomenon since the determinants are more “wants” rather than “needs”. Thus, any policy intervention should include educating households on rational consumption decision making.

APA, Harvard, Vancouver, ISO, and other styles

26

Duczkowski, Norbert, and Lubomir Słowik. "Influence of the subjective assessment of households’ financial situation on their debt." Wiadomości Statystyczne. The Polish Statistician 67, no. 8 (August 31, 2022): 41–63. http://dx.doi.org/10.5604/01.3001.0015.9701.

Full text

Abstract:

The determinants of household debt have been the subject of many scientific studies where income was identified as the key factor influencing debt. This is because income determines creditworthiness in banks. At the same time, behavioural finance research highlights the importance of subjective factors for individuals’ financial decision-making. The aim of this paper is to verify the influence of the subjective assessment of households’ financial situation (also known as financial wellbeing) on their debt. The research was based on secondary data for the years 2009–2020 published by Statistics Poland and the National Bank of Poland. The study used linear regression, where time series related to debt were the dependent variables, and time series related to income and financial wellbeing were the explaining variables. The study confirmed that taking into account the subjective assessment of households’ financial situation allows more effective modelling of household debt than disposable income solely. The results also demonstrated that individuals assessing their financial situation as very good are more likely to get into debt than those who believe their material status to be average. Additionally, as the assessment of financial wellbeing improves, household debt in foreign currencies decreases.

APA, Harvard, Vancouver, ISO, and other styles

27

Liu, Jianxu, Duangthip Sirikanchanarak, Songsak Sriboonchitta, and Jiachun Xie. "Analysis of Household Consumption Behavior and Indebted Self-Selection Effects: Case Study of Thailand." Mathematical Problems in Engineering 2018 (2018): 1–12. http://dx.doi.org/10.1155/2018/5486185.

Full text

Abstract:

Copula is deemed to be a good approach for relaxing bivariate or multivariate distributions in econometric models. This paper combines static and dynamic copula functions with endogenous switching to study self-selection effects and interdependence between error terms. This technique, copula-based models, is applied to analyze household consumption behavior and indebted self-selection effects in Thailand. The independent, Gaussian, Frank, Clayton, Gumbel, and Joe copula functions and the relatively rotated copula functions were employed in the empirical work. The best model was selected by the information criterion, AIC. We separated the households into four groups, indebted households, debt-free households, households with housing/land loans, and households without housing/land loans, which favors the examination of the treatment effects of indebted households or households with housing debts. The main results indicate that dynamic copula-based models offer better performance than others, such as classical endogenous switching models or all static copula-based models. Also, the I–I and the G–G models underestimate the treatment effects relative to the best models. Additionally, importantly, the traditional normal bivariate distribution or the static copula function could characterize the relationship as regards errors between household debt choice and household consumption and can lead to very misleading implications about the treatment effects.

APA, Harvard, Vancouver, ISO, and other styles

28

Dumitrescu, Bogdan Andrei, Adrian Enciu, Cătălina Adriana Hândoreanu, Carmen Obreja, and Florin Blaga. "Macroeconomic Determinants of Household Debt in OECD Countries." Sustainability 14, no. 7 (March 28, 2022): 3977. http://dx.doi.org/10.3390/su14073977.

Full text

Abstract:

This article investigates the macroeconomic determinants of household debt in developed economies using a sample comprising 26 OECD countries for the period of 2002q1–2020q4. By resorting to the unconditional quantile regression, we find relevant asymmetries in the response of household debt. According to our results, economic growth leads to lower household debt, but the beneficial effect decreases as the level of household debt increases. Inflation lowers household borrowing only if the level of debt is high. Higher house prices lead to higher household debt, with the impact becoming stronger as the level of debt is higher. Investments go hand in hand with household debt, and higher investments lead to higher levels of borrowing, even when household debt is already high. Mortgage credit interest rates are positively linked with household debt, starting with higher debt levels. A rising unemployment rate leads to lower household debt, but the link becomes weaker as the level of debt increases. Higher public expenditures are generally associated with lower household debt. In addition, we find that household debt exhibits very powerful autoregressive behavior, being difficult to reduce rapidly in the case of need.

APA, Harvard, Vancouver, ISO, and other styles

29

Seane, Sisimogang Tracy, Gisele Mah, and Paul Saah. "Risk, opportunities and reasons of the household debt changes: The case of an emerging economy." Corporate Ownership and Control 14, no. 1 (2016): 476–84. http://dx.doi.org/10.22495/cocv14i1c3p8.

Full text

Abstract:

In the past decades, household debt in both developed and developing countries have been increasing. With an increase in the standard of living, household debt is also bound to increase. This paper examines the cointegration and causal link among household disposable income, household savings, and debt service ratio, lending interest rate, consumer price index and household debt in South Africa. An Autoregressive Distributed Lag and Granger causality techniques was used to analyse data collected from the South African Reserve Bank and Quantec from 1984 to 2014. The results of Autoregressive Distributed Lag test revealed cointegrating relationships between household debt and debt service ratio as well as household debt and lending interest rate. However, there is no long run cointegrating relationship between household disposable income, household savings and consumer price index with household debt. The Granger causality results revealed that household disposable income, household savings, debt service ratio, lending interest rate, consumer price index do Granger cause household debt in South Africa. Policy makers should thus target these variables in order to reduce household debt in South Africa.

APA, Harvard, Vancouver, ISO, and other styles

30

Seane, Sisimogang Tracy, Gisele Mah, and Paul Saah. "Risk, opportunities and reasons of the household debt changes: The case of an emerging economy." Risk Governance and Control: Financial Markets and Institutions 6, no. 4 (2016): 207–15. http://dx.doi.org/10.22495/rcgv6i4c1art10.

Full text

Abstract:

In the past decades, household debt in both developed and developing countries have been increasing. With an increase in the standard of living, household debt is also bound to increase. This paper examines the cointergation and causal link among household disposable income, household savings, debt service ratio, lending interest rate, consumer price index and household debt in South Africa. An Autoregressive Distributed Lag and Granger causality techniques was used to analyse data collected from the South African Reserve Bank and Quantec from 1984 to 2014. The results of Autoregressive Distributed Lag test revealed cointegrating relationships between household debt and debt service ratio as well as household debt and lending interest rate. However, there is no long run cointegrating relationship between household disposable income, household savings and consumer price index with household debt. The Granger causality results revealed that household disposable income, household savings, debt service ratio, lending interest rate, consumer price index do Granger cause household debt in South Africa. Policy makers should thus target these variables in order to reduce household debt in South Africa.

APA, Harvard, Vancouver, ISO, and other styles

31

Lee, Insook. "Conditional effect of government debt on household debt." Applied Economics 54, no. 24 (March 8, 2022): 2759–77. http://dx.doi.org/10.1080/00036846.2021.1998332.

Full text

APA, Harvard, Vancouver, ISO, and other styles

32

Park, Jinbaek, and Young Lee. "Corporate income taxes, corporate debt, and household debt." International Tax and Public Finance 26, no. 3 (September 3, 2018): 506–35. http://dx.doi.org/10.1007/s10797-018-9513-4.

Full text

APA, Harvard, Vancouver, ISO, and other styles

33

Kornіvska, V. O., and O. L. Yaremenko. "Household Debts: Global Experience of Restructuring Debts and Ukrainian Reality." PROBLEMS OF ECONOMY 2, no. 48 (2021): 194–202. http://dx.doi.org/10.32983/2222-0712-2021-2-194-202.

Full text

Abstract:

The research results on the global problem of household debt growth, its causes, consequences, social context, and influence on the formation of aggregate demand are presented. It is substantiated that with the growth of debts, households are losing their share in aggregate demand, and the state is becoming an increasingly influential player compared to others due to the strengthening of fiscal and regulatory government influence. Facing the increasing debt pressure, households start reducing consumption, thus negatively affecting aggregate demand. The government, on its part, trying to improve the situation, increases subsidies and provides policies that encourage banks to restructure loans, develops restructuring programs, etc. These trends are proven to be of an urgent character and should not be routinized, in order not to distort the market environment or increase the direct influence of the state on purely market processes. The analysis of global experience, carried out in the article, shows that in the condition of economic destabilization debt restructuring is the only way to help the population out of the debt trap. Special attention is paid to the analysis of the ways to harmonize the accumulation of household debt through restructuring, to identify its market mechanisms, and to prove that the state should provide extensive assistance to households trying to overcome the debt trap. Three options for the state participation in the restructuring process have been identified: institutional participation (when the state only provides regulatory support); design and implementation of state restructuring programs; adoption of regulations on compulsory restructuring. New Ukrainian norms and regulations related to forced debt restructuring are analyzed, and their social context is proved to be contradictory. On the one hand, the adoption of corresponding laws became a significant step towards maintaining the social stability of the Ukrainian population against the background of the growing poverty and increasing total indebtedness of the people (even in the sphere of payments for public utility services), and the growing currency risks. On the other hand, Ukrainian market players often show moral hazards of non-compliance with the conditions of debt discipline, which have become part of the financial behavior, negatively affecting the general financial culture.

APA, Harvard, Vancouver, ISO, and other styles

34

Herispon, Herispon. "An Empirical Analysis of Household Debt Behavior Determinants." Economics and Finance in Indonesia 65, no. 2 (December 1, 2019): 132. http://dx.doi.org/10.47291/efi.v65i2.627.

Full text

Abstract:

This study identifies the determinants of debt behaviors and their effects on household consumption. We surveyed households in Riau, particularly in Pekanbaru and its neighboring areas, using purposive sampling and collected 390 useable responses. Our findings show that of the ten determinants considered, debt behavior can be explained by five determinants: (i) imitated lifestyle and consumerism, (ii) ability to manage money from debt, (iii) effects of promotion on the internet and visual media, (iv) monthly income, and (v) increasing household expenses and dependants. Implications of the findings are discussed.

APA, Harvard, Vancouver, ISO, and other styles

35

Maroto, Michelle. "The Great Balancing Act: Households, Debt, and Economic Insecurity." Socius: Sociological Research for a Dynamic World 7 (January 2021): 237802312098819. http://dx.doi.org/10.1177/2378023120988199.

Full text

Abstract:

Balancing finances is a complicated and precarious act for many U.S. households, with constant concerns that income will not be enough. What happens when households are no longer able to keep up this balancing act? This research draws on 2019 Survey of Consumer Finances data to examine varying experiences of economic insecurity, measured as whether a household’s expenses exceeded its income in the previous year, and households’ strategies for managing economic insecurity. The author explores the ties among economic security, household debt burdens, and credit market access. By comparing the actual strategies that insecure households used to weather insecurity with the hypothetical strategies proposed by more secure households, the findings show that the resources that protect against insecurity also influence how households manage it. Although most insecure households relied on borrowing when their spending exceeded their incomes, secure households most often recommended spending from savings or finding additional income.

APA, Harvard, Vancouver, ISO, and other styles

36

HERISPON, HERISPON. "THE EFFECT OF FINANCIAL INCLUSION AND BANKING BEHAVIOR ON HOUSEHOLD DEBT BEHAVIOR." JEBI (Jurnal Ekonomi dan Bisnis Islam) 4, no. 1 (September 24, 2019): 51. http://dx.doi.org/10.15548/jebi.v4i1.205.

Full text

Abstract:

This study aims to examine the effect of financial inclusion from the dimensions of access, user, quality, wealth on bank behavior and debt behavior and the indirect influence of each dimension of financial inclusion on bank behavior and household debt behavior. With population areas and samples in the city of Pekanbaru, Riau, Indonesia.The research focused on the demand side in banking services, namely consumer credit services to households. Using a purposive sampling method with a total sample of 303 household units in the city of Pekanbaru.The analysis tool used in the study was SEM-WarpPLS version 6.From this study the authors found that access, user, quality, wealth had a positive effect on the behavior of household debt, then the authors found that access, user, quality had a positive effect on bank behavior, then found that access, user, quality, wealth had an indirect positive effect towards debt behavior through mediating bank behavior.It was concluded from this study that the behavior of banks as mediating variables can reduce the direct influence of financial inclusion on the behavior of household debt.

APA, Harvard, Vancouver, ISO, and other styles

37

Vernikov, A. V., and A. A. Kurysheva. "Household debt: An institutionalist perspective and empirical assessment." Voprosy Ekonomiki, no. 10 (October 9, 2022): 138–56. http://dx.doi.org/10.32609/0042-8736-2022-10-138-156.

Full text

Abstract:

The paper deals with the empirical evidence on household borrowing behavior from an institutionalist perspective. Assuming close interconnections between the availability of credit and consumerist culture, we estimate the effects of precedence of consumption, status consumption, and “investment”-minded buying driven by debt pattern. We rely on official statistics on household debt, disposable income and spending since the early 2000s to 2020. The institution of precedence of consumption is measured through data on loans drawn by households, outstanding loans, loan payments, household consumption and disposable income. Corresponding metrics illustrate that debt-financed consumption has become a widespread scheme. Financialization rate is measured separately for retail sector and housing market. Households are becoming more dependent on loan payments, as we estimated for different income groups using the paymentto-income ratios. In case with car loans, these metrics serve as indirect evidence for the embeddedness of conspicuous motive. Evidence on housing loans suggests that “investment”-minded buying can hardly result in a short-term gain. Research findings show that the pattern of precedence of consumption feeds the socially induced motives of conspicuous waste and speculation. Causality can go the other way too. The novelty of our approach is that we integrate the discourse of financialization into the institutionalist perspective and combine the theoretical constructs of precedence of consumption, conspicuous waste and speculative motive, seen as the factors of debt dependence. We contribute to applied studies by introducing factual data on household debt and providing evidence of interplay between these factors. The research is relevant socially and economically in view of the connection between unsustainable household debt and consumerist culture.

APA, Harvard, Vancouver, ISO, and other styles

38

Montgomerie, Johnna, and Daniela Tepe-Belfrage. "Caring for Debts: How the Household Economy Exposes the Limits of Financialisation." Critical Sociology 43, no. 4-5 (November 30, 2016): 653–68. http://dx.doi.org/10.1177/0896920516664962.

Full text

Abstract:

This article uses the United Kingdom as a case study to explore the limits of financialisation. It makes visible the increasingly intimate relationship between financialisation, indebtedness and social reproduction under the conditions of neoliberal austerity (Fraser, 2014). It does so by unpacking how the everyday experiences of indebtedness materialise among individuals, households and communities. Specifically, we investigate debt’s significance within the household economy by analysing the everyday talk within ‘debt threads’ from leading peer-to-peer forums (Stanley, 2014, Stanley et al., 2016). The evidence reveals how debt interferes with and disrupts the intimacies of life, and in doing so erodes its own moral economic claim as a priority obligation within the household economy. These are the limits of financialisation because if debts are not ‘cared for’ they are non-performing. And, non-performing loans – as it turns out – cause catastrophic failures in financialised global markets. This alone makes understanding the household economy relevant to why neoliberalism is failing.

APA, Harvard, Vancouver, ISO, and other styles

39

Martin, Elizabeth C., and Rachel E. Dwyer. "Financial Stress, Race, and Student Debt During the Great Recession." Social Currents 8, no. 5 (July 23, 2021): 424–45. http://dx.doi.org/10.1177/23294965211026692.

Full text

Abstract:

As the onus of paying for higher education shifted from the state onto students and their families, student indebtedness grew across a wide range of households in the United States in the 2000s, especially among Black and Hispanic households. Holding student debt is a financial risk that may leave households more vulnerable to economic shocks. We study the relationship between household student loan burden and the likelihood of financial stress during the Great Recession using the unique 2007 to 2009 panel of the Survey of Consumer Finances. We find a robust positive relationship across four dimensions of student loan burden and holding constant household characteristics and previous financial stress. We find that Black and Hispanic households with higher student debt burdens experienced higher odds of financial stress relative to White households, even once accounting for prior financial stress. Our results demonstrate the importance of considering the household risk incurred in the US system of financed attainment, especially during the inevitable downturns of a capitalist economy.

APA, Harvard, Vancouver, ISO, and other styles

40

HongKiseok and 최지원. "Stress-Testing Korea’s Household Debt." KUKJE KYUNGJE YONGU 24, no. 1 (March 2018): 1–24. http://dx.doi.org/10.17298/kky.2018.24.1.001.

Full text

APA, Harvard, Vancouver, ISO, and other styles

41

Andrés, J., J. E. Boscá, and J. Ferri. "Household Debt and Fiscal Multipliers." Economica 82 (September 14, 2015): 1048–81. http://dx.doi.org/10.1111/ecca.12161.

Full text

APA, Harvard, Vancouver, ISO, and other styles

42

Karasulu, Meral. "Stresstesting Household Debt in Korea." IMF Working Papers 08, no. 255 (2008): 1. http://dx.doi.org/10.5089/9781451871135.001.

Full text

APA, Harvard, Vancouver, ISO, and other styles

43

Schich, Sebastian, and Jung-Hyun Ahn. "Housing Markets and Household Debt." Financial Market Trends 2007, no. 1 (July 11, 2007): 191–214. http://dx.doi.org/10.1787/fmt-v2007-art10-en.

Full text

APA, Harvard, Vancouver, ISO, and other styles

44

DONALDSON, JASON RODERICK, GIORGIA PIACENTINO, and ANJAN THAKOR. "Household Debt Overhang and Unemployment." Journal of Finance 74, no. 3 (March 18, 2019): 1473–502. http://dx.doi.org/10.1111/jofi.12760.

Full text

APA, Harvard, Vancouver, ISO, and other styles

45

Bahadir, Berrak, Kuhelika De, and William D. Lastrapes. "Household debt, consumption and inequality." Journal of International Money and Finance 109 (December 2020): 102240. http://dx.doi.org/10.1016/j.jimonfin.2020.102240.

Full text

APA, Harvard, Vancouver, ISO, and other styles

46

Georgarakos, Dimitris, Michael Haliassos, and Giacomo Pasini. "Household Debt and Social Interactions." Review of Financial Studies 27, no. 5 (February 25, 2014): 1404–33. http://dx.doi.org/10.1093/rfs/hhu014.

Full text

APA, Harvard, Vancouver, ISO, and other styles

47

Scott, Robert, and Steven Pressman. "Household Debt and Income Distribution." Journal of Economic Issues 47, no. 2 (June 2013): 323–32. http://dx.doi.org/10.2753/jei0021-3624470204.

Full text

APA, Harvard, Vancouver, ISO, and other styles

48

Laryea, Thomas, and Luc Laeven. "Principles of Household Debt Restructuring." IMF Staff Position Notes 2009, no. 15 (2009): 1. http://dx.doi.org/10.5089/9781462376773.004.

Full text

APA, Harvard, Vancouver, ISO, and other styles

49

Mian, Atif, Amir Sufi, and Emil Verner. "Household Debt and Business Cycles Worldwide*." Quarterly Journal of Economics 132, no. 4 (May 26, 2017): 1755–817. http://dx.doi.org/10.1093/qje/qjx017.

Full text

Abstract:

Abstract An increase in the household debt to GDP ratio predicts lower GDP growth and higher unemployment in the medium run for an unbalanced panel of 30 countries from 1960 to 2012. Low mortgage spreads are associated with an increase in the household debt to GDP ratio and a decline in subsequent GDP growth, highlighting the importance of credit supply shocks. Economic forecasters systematically over-predict GDP growth at the end of household debt booms, suggesting an important role of flawed expectations formation. The negative relation between the change in household debt to GDP and subsequent output growth is stronger for countries with less flexible exchange rate regimes. We also uncover a global household debt cycle that partly predicts the severity of the global growth slowdown after 2007. Countries with a household debt cycle more correlated with the global household debt cycle experience a sharper decline in growth after an increase in domestic household debt.

APA, Harvard, Vancouver, ISO, and other styles

50

Swanepoel, Ezelda. "Auto-regressive Distributed Lag Model for long-run US household debt determinants." Investment Management and Financial Innovations 16, no. 3 (August 1, 2019): 40–48. http://dx.doi.org/10.21511/imfi.16(3).2019.05.

Full text

Abstract:

US household debt increased on a yearly basis from 1987 to 2007. In addition, household debt in the USA nearly doubled between 2000 and 2007, from $5.6 trillion to $9 trillion. This came to an abrupt end in 2009 with the crash of the financial market. This paper employs the bound test and Auto-regressive Distributed Lag Model to determine the long-run relationship between US household debt and consumer prices, housing prices, the unemployment rate, and the lending rate. Unit root tests were conducted first to ascertain the stationarity of the variables. E-views 11 was used in the analysis of the data, which was obtained from Q1: 1990 to Q1: 2007 from the International Monetary Fund and the US FED. It was found that in the long run, there is a negative effect of consumer prices and unemployment on US household debt, while house prices and the lending rate would have a positive effect on household debt.

APA, Harvard, Vancouver, ISO, and other styles

Journal articles on the topic 'Household debt'

Create a spot-on reference in APA, MLA, Chicago, Harvard, and other styles