IDEAS home Printed from https://ideas.repec.org/h/cml/incocp/7en-14.html
   My bibliography  Save this book chapter

Determinants of Households’ Default Probability in Uruguay

In: Financial Decisions of Households and Financial Inclusion: Evidence for Latin America and the Caribbean

Author

Listed:
  • María Victoria Landaberry

    (Banco Central del Uruguay)

Abstract

This paper estimates models on the default probability of households in Uruguay considering sociodemographic and financial characteristics using data obtained from the second edition of the Household Financial Survey and the Continuous Household Survey. It studies the differences between the nonmortgage credit and credit card segments. Household income, the relation between income and expenditure, and the age of the household head are significant for explaining default probability in all the segments, while the education of the household head is only relevant for the nonmortgage credit segment. Furthermore, we apply the results of the model to assess the impact on household debt default by the obligation to pay salaries through electronic media introduced by the Financial Inclusion Law. According to the results, having a bank account increases the number of households with nonmortgage and credit card debt. However, in the former segment the group of households that take out nonmortgage credit is riskier and the debt default rate rises, while in the credit card segment the debt default rate remains at the same level.

Suggested Citation

  • María Victoria Landaberry, 2018. "Determinants of Households’ Default Probability in Uruguay," Investigación Conjunta-Joint Research, in: María José Roa García & Diana Mejía (ed.), Financial Decisions of Households and Financial Inclusion: Evidence for Latin America and the Caribbean, edition 1, volume 1, chapter 14, pages 463-506, Centro de Estudios Monetarios Latinoamericanos, CEMLA.
    • Handle: RePEc:cml:incocp:7en-14
    Note: Joint Research Program of the Central Bank Researchers Network
    as

    Download full text from publisher

    File URL: http://cemla.org/PDF/ic/2016-jrp/2016-jrp-14.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Rodrigo Alfaro & Natalia Gallardo & Roberto Stein, 2010. "The Determinants of Household Debt Defa," Working Papers Central Bank of Chile 574, Central Bank of Chile.
    2. Ana María Iregui-Bohórquez & Ligia Alba Melo-Becerra & María Teresa Ramírez-Giraldo & Ana María Tribín-Uribe, 2016. "Determinantes del acceso al crédito formal e informal: Evidencia de los hogares de ingresos medios y bajos en Colombia," Borradores de Economia 956, Banco de la Republica de Colombia.
    3. Jaime Ruiz-Tagle & Francis Vella, 2010. "Borrowing Constraints and Credit Demand," Working Papers Central Bank of Chile 578, Central Bank of Chile.
    4. repec:ptu:bdpart:r201205 is not listed on IDEAS
    5. Helena Marrez & Mathias Schmit, 2009. "Credit risk analysis in microcredit: How does gender matter?," Working Papers CEB 09-053.RS, ULB -- Universite Libre de Bruxelles.
    6. Özlem Özdemir & Levent Boran, 2004. "An Empirical Investigation on Consumer Credit Default Risk," Working Papers 2004/20, Turkish Economic Association.
    7. Van de Ven, Wynand P. M. M. & Van Praag, Bernard M. S., 1981. "The demand for deductibles in private health insurance : A probit model with sample selection," Journal of Econometrics, Elsevier, vol. 17(2), pages 229-252, November.
    8. Miguel Mello & Jorge Ponce, 2014. "The determinants Uruguayan households' indebtedness," Documentos de trabajo 2014010, Banco Central del Uruguay.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. María Victoria Landaberry, 2018. "Factores determinantes de la probabilidad de no pago de deudas de los hogares uruguayos," Investigación Conjunta-Joint Research, in: María José Roa García & Diana Mejía (ed.), Decisiones financieras de los hogares e inclusión financiera: evidencia para América Latina y el Caribe, edition 1, volume 1, chapter 14, pages 483-528, Centro de Estudios Monetarios Latinoamericanos, CEMLA.
    2. María José Roa García & Diana Mejía (ed.), 2018. "Financial Decisions of Households and Financial Inclusion: Evidence for Latin America and the Caribbean," Investigación Conjunta-Joint Research, Centro de Estudios Monetarios Latinoamericanos, CEMLA, edition 1, volume 1, number 7en, December.
    3. María Victoria Landaberry, 2018. "Restricción de crédito y probabilidad de no pago de los hogares uruguayos," Documentos de trabajo 2018001, Banco Central del Uruguay.
    4. Carlos Madeira, 2019. "Computing population weights for the EFH survey," Journal Economía Chilena (The Chilean Economy), Central Bank of Chile, vol. 22(1), pages 004-026, April.
    5. Jaime Ruiz-Tagle & Leidy García & Álvaro Miranda, 2013. "Proceso de Endeudamiento y Sobre Endeudamiento de los Hogares en Chile," Working Papers Central Bank of Chile 703, Central Bank of Chile.
    6. Ana María Iregui-Bohórquez & Ligia Alba Melo-Becerra & María Teresa Ramírez-Giraldo & Ana María Tribín-Uribe, 2018. "Crédito formal e informal de los hogares en Colombia," Investigación Conjunta-Joint Research, in: María José Roa García & Diana Mejía (ed.), Decisiones financieras de los hogares e inclusión financiera: evidencia para América Latina y el Caribe, edition 1, volume 1, chapter 5, pages 133-166, Centro de Estudios Monetarios Latinoamericanos, CEMLA.
    7. Laura Muriel Cuccaro & Máximo Sangiácomo & Lucía Tumini & Ariel Wilkis, 2023. "Does the Argentine financial system reduce or amplify the labor market’s gender gap?," Ensayos Económicos, Central Bank of Argentina, Economic Research Department, vol. 1(82), pages 52-76, November.
    8. Giuseppe Croce & Emanuela Ghignoni, 2011. "Overeducation and spatial flexibility in Italian local labour markets," Working Papers in Public Economics 145, Department of Economics and Law, Sapienza University of Roma.
    9. Fossen, Frank M. & König, Johannes, 2015. "Public health insurance and entry into self-employment," VfS Annual Conference 2015 (Muenster): Economic Development - Theory and Policy 112934, Verein für Socialpolitik / German Economic Association.
    10. Osei-Tutu, Francis & Weill, Laurent, 2023. "Individualism reduces borrower discouragement," Journal of Economic Behavior & Organization, Elsevier, vol. 211(C), pages 370-385.
    11. Eleni Kalfa & Matloob Piracha, 2017. "Immigrants’ educational mismatch and the penalty of over-education," Education Economics, Taylor & Francis Journals, vol. 25(5), pages 462-481, September.
    12. Magnus Söderberg, 2008. "Uncertainty and regulatory outcome in the Swedish electricity distribution sector," European Journal of Law and Economics, Springer, vol. 25(1), pages 79-94, February.
    13. repec:dau:papers:123456789/5135 is not listed on IDEAS
    14. Tarp, Finn & Simler, Kenneth & Matusse, Cristina & Heltberg, Rasmus & Dava, Gabriel, 2002. "The Robustness of Poverty Profiles Reconsidered," Economic Development and Cultural Change, University of Chicago Press, vol. 51(1), pages 77-108, October.
    15. Granguillhome Ochoa, Rogelio & Lach, Samantha & Masaki, Takaaki & Rodríguez-Castelán, Carlos, 2022. "Mobile internet adoption in West Africa," Technology in Society, Elsevier, vol. 68(C).
    16. Riillo, Cesare Fabio Antonio & Peroni, Chiara, 2022. "Immigration and entrepreneurship in Europe: cross-country evidence," MPRA Paper 114580, University Library of Munich, Germany.
    17. Tocco, Barbara & Bailey, Alastair & Davidova, Sophia, 2013. "Determinants to Leave Agriculture and Change Occupational Sector: Evidence from an Enlarged EU," Working papers 155704, Factor Markets, Centre for European Policy Studies.
    18. Colm Harmon & Claire Finn, 2006. "A dynamic model of demand for private health insurance in Ireland," Open Access publications 10197/666, School of Economics, University College Dublin.
    19. Matloob Piracha & Massimiliano Tani & Florin Vadean, 2012. "Immigrant over- and under-education: the role of home country labour market experience," IZA Journal of Migration and Development, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 1(1), pages 1-21, December.
    20. Xia Vivian Zhou & Kimberly L. Jensen & James A. Larson & Burton C. English, 2021. "Farmer Interest in and Willingness to Grow Pennycress as an Energy Feedstock," Energies, MDPI, vol. 14(8), pages 1-16, April.
    21. Mataigne, Virginie & Meoli, Michele & Vanacker, Tom & Vismara, Silvio, 2025. "False signaling by platform team members and post-campaign venture outcomes: Evidence from an equity crowdfunding platform," Journal of Business Venturing, Elsevier, vol. 40(1).

    More about this item

    Keywords

    ;
    ;
    ;
    ;

    JEL classification:

    • G19 - Financial Economics - - General Financial Markets - - - Other
    • G01 - Financial Economics - - General - - - Financial Crises
    • C5 - Mathematical and Quantitative Methods - - Econometric Modeling

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:cml:incocp:7en-14. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Matias Ossandon Busch (email available below). General contact details of provider: https://edirc.repec.org/data/cemlamx.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.