کد مقاله | کد نشریه | سال انتشار | مقاله انگلیسی | نسخه تمام متن |
---|---|---|---|---|
984394 | 934247 | 2012 | 13 صفحه PDF | دانلود رایگان |
![عکس صفحه اول مقاله: Household financial vulnerability: An empirical analysis Household financial vulnerability: An empirical analysis](/preview/png/984394.png)
Using survey data, we investigate household financial distress. Specifically, we propose an indicator of financial vulnerability to jointly analyse different features of household financial distress, analysing its socio-demographic and economic determinants. A total number of 3102 Italian households make up the sample.The empirical analysis highlights that for the median level of the financial vulnerability index households already exhibit some important symptoms of financial vulnerability, such as problems in getting to the end of the month or an inability to face unexpected expenses. As regards the determinants of the financial vulnerability index, three findings need to be pointed out. First, the level of debt servicing is positively related to financial vulnerability and the effect is stronger for households holding unsecured debt, i.e. consumer credit. Second, financial vulnerability also increases for impulsive individuals, who may adopt impatient, short-sighted behaviour patterns which make it difficult for them to be fully aware of the consequences of their financial and spending decisions. Third, a higher level of education helps to reduce financial fragility.
► We create an indicator of financial vulnerability.
► We use survey data to analyse the determinants of household financial vulnerability.
► We find that household debt, specifically consumer credit, increases household vulnerability.
► Emotions may also influence money management and sustainability of personal debt.
► We also find that a higher level of education helps to reduce financial fragility.
Journal: Research in Economics - Volume 66, Issue 3, September 2012, Pages 284–296