The role of financial position on consumer indebted-ness. An empirical analysis in Italy
AbstractThe paper focuses on the consumer credit market in Italy and on the related risk of over-indebtedness. Using survey panel data, we investigate the impact of overindebtedness on consumption behaviour, evaluating in particular if consumer credit is used to cover gaps in income and if this is associated with an increased and diffused inadequacy of financial and economic conditions of indebted households. Results highlight that a relatively consistent part of consumer credit is concentrated in the hands of financially fragile individuals. Moreover, when considering the amount of debt measured in relative terms, being in a difficult financial position adds 1.0 percentage points to the risk of over-indebtedness compared to households without any financial and economic difficulty
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Bibliographic InfoPaper provided by University of Genoa, Research Doctorate in Public Economics in its series DEP - series of economic working papers with number 8/2012.
Date of creation: Sep 2012
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household indebtedness; consumer credit; over-indebtedness; permanent income hypothesis;
Find related papers by JEL classification:
- C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models
- D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
- D14 - Microeconomics - - Household Behavior - - - Personal Finance
- D91 - Microeconomics - - Intertemporal Choice and Growth - - - Intertemporal Consumer Choice; Life Cycle Models and Saving
- G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
This paper has been announced in the following NEP Reports:
- NEP-ALL-2013-01-19 (All new papers)
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