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Households’ Debt and Financial Sustainability in South Africa

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  • Elvis Munyaradzi Ganyaupfu

Abstract

The objective of this study was to analyse South African household sectors’ financial behaviour in respect of how households historically reacted to their aggregate debt position during the period 1990-2013. Following diagnostic assessment of stationarity and co integration properties of time series data, a saving reaction function was estimated to examine whether households’ financial behaviour was sustainable subject to the lifecycle model. A standard four-variable framework of the Vector Error Correction Model (VECM)was estimated using E-views. Inconformity to the lifecycle model, the results provide evidence that households indeed behaved in a financially sustainable manner during the period under review.

Suggested Citation

  • Elvis Munyaradzi Ganyaupfu, 2015. "Households’ Debt and Financial Sustainability in South Africa," International Journal of Financial Markets, Research Academy of Social Sciences, vol. 1(2), pages 70-76.
    • Handle: RePEc:rss:jnljfm:v1i2p3
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    References listed on IDEAS

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