Advanced Search
MyIDEAS: Login

Household over-indebtedness: definition and measurement with Italian data

Contents:

Author Info

  • Giovanni D'Alessio

    ()
    (Bank of Italy)

  • Stefano Iezzi

    ()
    (Bank of Italy)

Abstract

The last decade has seen significant increases in consumer indebtedness in western countries, causing concern about its economic and social impact. In particular, over-indebtedness is attracting attention from national and international authorities because of its potential effect on both the sustainability of households’ indebtedness and the stability of the financial system. From a social point of view, the excessive accumulation of debts accompanied by households’ liquidity constraints causes a deterioration in households’ social and economic well-being, thus leading in the long term to social exclusion and poverty. The aim of this paper is to present and analyze the main measures of over-indebtedness used in the literature. In particular, the paper uses data from the Italian Survey of Household Income and Wealth to extend the existing knowledge about the possible ways of measuring economic difficulty and over-indebtedness. The traditional and the new measures of over-indebtedness are subsequently compared with the measures of poverty in order to disentangle the relationship between the two phenomena.

Download Info

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
File URL: http://www.bancaditalia.it/pubblicazioni/econo/quest_ecofin_2/qef149/QEF_149.pdf
Download Restriction: no

Bibliographic Info

Paper provided by Bank of Italy, Economic Research and International Relations Area in its series Questioni di Economia e Finanza (Occasional Papers) with number 149.

as in new window
Length:
Date of creation: Feb 2013
Date of revision:
Handle: RePEc:bdi:opques:qef_149_13

Contact details of provider:
Postal: Via Nazionale, 91 - 00184 Roma
Web page: http://www.bancaditalia.it
More information through EDIRC

Related research

Keywords: household debts; over-indebtedness; poverty;

Find related papers by JEL classification:

This paper has been announced in the following NEP Reports:

References

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
as in new window
  1. Sarah Bridges & Richard Disney, 2004. "Use of credit and arrears on debt among low-income families in the United Kingdom," Fiscal Studies, Institute for Fiscal Studies, vol. 25(1), pages 1-25, March.
  2. Andrea Brandolini & Silvia Magri & Timothy M. Smeeding, 2010. "Asset-based measurement of poverty," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 29(2), pages 267-284.
  3. DeVaney, Sharon A. & Lytton, Ruth H., 1995. "Household insolvency: A review of household debt repayment, delinquency, and bankruptcy," Financial Services Review, Elsevier, vol. 4(2), pages 137-156.
  4. Lee Cronbach, 1951. "Coefficient alpha and the internal structure of tests," Psychometrika, Springer, vol. 16(3), pages 297-334, September.
  5. Bucks, Brian & Pence, Karen, 2008. "Do borrowers know their mortgage terms?," Journal of Urban Economics, Elsevier, vol. 64(2), pages 218-233, September.
  6. Gianni Betti & Neil Dourmashkin & Mariacristina Rossi & Ya Ping Yin, 2007. "Consumer over-indebtedness in the EU: measurement and characteristics," Journal of Economic Studies, Emerald Group Publishing, vol. 34(2), pages 136-156, May.
  7. Luisa ANDERLONI & Daniela VANDONE, 2010. "Risk of over-indebtedness and behavioural factors," Departmental Working Papers 2010-25, Department of Economics, Management and Quantitative Methods at Università degli Studi di Milano.
  8. Silvia Magri & Raffaella Pico & Cristiana Rampazzi, 2011. "Which households use consumer credit in Europe?," Questioni di Economia e Finanza (Occasional Papers) 100, Bank of Italy, Economic Research and International Relations Area.
  9. Annamaria Lusardi & Peter Tufano, 2009. "Debt Literacy, Financial Experiences, and Overindebtedness," NBER Working Papers 14808, National Bureau of Economic Research, Inc.
  10. Andrea Neri & Roberta Zizza, 2010. "Income reporting behaviour in sample surveys," Temi di discussione (Economic working papers) 777, Bank of Italy, Economic Research and International Relations Area.
Full references (including those not matched with items on IDEAS)

Citations

Lists

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

Statistics

Access and download statistics

Corrections

When requesting a correction, please mention this item's handle: RePEc:bdi:opques:qef_149_13. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ().

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.