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Spending and credit use in the private household

Author

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  • Kirchler, Erich
  • Hoelzl, Erik
  • Kamleitner, Bernadette

Abstract

Economic decisions in private households involve two aspects: what to buy and how to finance it. Models of spending and financing are presented, and determinants of credit decisions in the private household are discussed. It is proposed that both situational characteristics (e.g., gender roles, children, and relationship quality) and process characteristics (e.g., mental accounting and utility prediction) need to be taken into account. Moving from an individual perspective to a household perspective has implications for theoretical conceptions of credit decisions, and for consulting policy of banks and consumer organizations.

Suggested Citation

  • Kirchler, Erich & Hoelzl, Erik & Kamleitner, Bernadette, 2008. "Spending and credit use in the private household," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 37(2), pages 519-532, April.
  • Handle: RePEc:eee:soceco:v:37:y:2008:i:2:p:519-532
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. Bernadette Kamleitner & Bianca Hornung & Erich Kirchler, 2010. "Over-indebtedness and the interplay of factual and mental money management: An interview study," Working Papers 34, Queen Mary, University of London, School of Business and Management, Centre for Globalisation Research.
    2. Hoelzl, Erik & Pollai, Maria & Kamleitner, Bernadette, 2009. "Experience, prediction and recollection of loan burden," Journal of Economic Psychology, Elsevier, vol. 30(3), pages 446-454, June.
    3. Miotto, Ana Paula S. C. & Parente, Juracy, 2015. "Antecedentes e consequências do gerenciamento das finanças domésticas na classe média baixa brasileira," RAE - Revista de Administração de Empresas, FGV-EAESP Escola de Administração de Empresas de São Paulo (Brazil), vol. 55(1), January.
    4. Olomola, Aderbigbe & Gyimah-Brempong, Kwabena, 2014. "Loan demand and rationing among small-scale farmers in Nigeria:," IFPRI discussion papers 1403, International Food Policy Research Institute (IFPRI).
    5. Piotr Białowolski, 2014. "Patterns of debt possession among households in Poland – a multi-group latent class approach," Bank i Kredyt, Narodowy Bank Polski, vol. 45(2), pages 79-104.
    6. Vicki L. Bogan & Angela R. Fertig, 2013. "Portfolio Choice and Mental Health," Review of Finance, European Finance Association, vol. 17(3), pages 955-992.
    7. Dahal, Arati & Fertig, Angela, 2013. "An econometric assessment of the effect of mental illness on household spending behavior," Journal of Economic Psychology, Elsevier, vol. 37(C), pages 18-33.
    8. repec:eee:rensus:v:75:y:2017:i:c:p:1066-1080 is not listed on IDEAS
    9. E. Pastrapa & C. Apostolopoulos, 2015. "Estimating Determinants of Borrowing: Evidence from Greece," Journal of Family and Economic Issues, Springer, vol. 36(2), pages 210-223, June.

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