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Spending and credit use in the private household

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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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    2. Jessica Schicks, 2013. "From a Supply Gap to a Demand Gap? The Risk and Consequences of Over-indebting the Underbanked," Palgrave Macmillan Books, in: Jean-Pierre Gueyie & Ronny Manos & Jacob Yaron (ed.), Microfinance in Developing Countries, chapter 8, pages 152-177, Palgrave Macmillan.
    3. Fenaba R. Addo & Xing Zhang, 2020. "Debt Concordance and Relationship Quality: A Couple-Level Analysis," Journal of Family and Economic Issues, Springer, vol. 41(3), pages 405-423, September.
    4. 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.
    5. 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.
    6. 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.
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