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The Effects of Over-indebtedness on Individual Health

Author

Listed:
  • Maite Blázquez

    (Universidad Autónoma de Madrid)

  • Santiago Budría

    (Universidad Antonio Lebrija and IZA)

Abstract

This paper uses panel data from four waves (2002, 2005, 2008 and 2011) of the Spanish Survey of Household Finances (EFF) to investigate whether debts burdens hamper people’s health. Several measures of debt strain are constructed, including debt-to-income ratios, the existence of debt arrears and amounts of outstanding debts. The paper also differentiates between mortgage and non-mortgage debts. The results, based on a random effects model, show that non-mortgage debt payments and debt arrears are negatively related with people’s health.

Suggested Citation

  • Maite Blázquez & Santiago Budría, 2018. "The Effects of Over-indebtedness on Individual Health," Hacienda Pública Española / Review of Public Economics, IEF, vol. 227(4), pages 103-131, December.
  • Handle: RePEc:hpe:journl:y:2018:v:227:i:4:p:103-131
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    More about this item

    Keywords

    Over-indebtedness; self-assessed health; random effects model;
    All these keywords.

    JEL classification:

    • G01 - Financial Economics - - General - - - Financial Crises
    • I13 - Health, Education, and Welfare - - Health - - - Health Insurance, Public and Private
    • I22 - Health, Education, and Welfare - - Education - - - Educational Finance; Financial Aid

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