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Consumer debt and financial fragility in Italy

Author

Listed:
  • Barbara CAVALLETTI
  • Corrado LAGAZIO
  • Daniela VANDONE
  • Elena LAGOMARSINO

Abstract

This paper focuses on the consumer credit market in Italy and the related risk of over-indebtedness. Using survey panel data, we investigate the role of consumer financial position on the use and increase in consumer debt over time, evaluating, in particular, whether consumer credit is used to cover gaps in income and whether this use is associated with the increased and widespread inadequacy of the financial and economic conditions of indebted households.

Suggested Citation

  • Barbara CAVALLETTI & Corrado LAGAZIO & Daniela VANDONE & Elena LAGOMARSINO, 2014. "Consumer debt and financial fragility in Italy," Departmental Working Papers 2014-08, Department of Economics, Management and Quantitative Methods at Università degli Studi di Milano.
    • Handle: RePEc:mil:wpdepa:2014-08
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    File URL: http://wp.demm.unimi.it/files/wp/2014/DEMM-2014_08wp.pdf
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    References listed on IDEAS

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    More about this item

    Keywords

    household indebtedness; consumer credit; over-indebtedness; lifecycle hypothesis;
    All these keywords.

    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 - - - Household Saving; Personal Finance
    • D91 - Microeconomics - - Micro-Based Behavioral Economics - - - Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making
    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages

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