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Over-indebtedness in Italy: how widespread and persistent is it?

Author

Listed:
  • Giovanni D'Alessio

    (Bank f Italy)

  • Stefano Iezzi

    (Bank f Italy)

Abstract

The purpose of this paper is to examine the measures of over-indebtedness proposed in the literature and to apply them to the Italian case from 2008 to 2014 by using the wide array of information available from the Bank of Italy�s survey on households. The numerous measures of over-indebtedness are critically analysed from both a cross-sectional and a historical perspective. The panel also enables us to analyse the transition into and out of over-indebtedness. Moreover, by using the Eurosystem�s Household Finance and Consumption Survey (HFCS), we can compare the over-indebtedness of Italian households with that of other euro-area countries. The paper also addresses the issue of the measurement errors that could bias both the level of over-indebtedness and estimates of the transition into and out of it.

Suggested Citation

  • Giovanni D'Alessio & Stefano Iezzi, 2016. "Over-indebtedness in Italy: how widespread and persistent is it?," Questioni di Economia e Finanza (Occasional Papers) 319, Bank of Italy, Economic Research and International Relations Area.
  • Handle: RePEc:bdi:opques:qef_319_16
    as

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    File URL: https://www.bancaditalia.it/pubblicazioni/qef/2016-0319/QEF_319_16.pdf
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    References listed on IDEAS

    as
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    17. repec:zbw:rwirep:0150 is not listed on IDEAS
    18. Keese, Matthias, 2009. "Triggers and Determinants of Severe Household Indebtedness in Germany," Ruhr Economic Papers 150, RWI - Leibniz-Institut für Wirtschaftsforschung, Ruhr-University Bochum, TU Dortmund University, University of Duisburg-Essen.
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    Cited by:

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    2. Simona Malovaná & Michal Hlavácek & Kamil Galušcák, 2017. "Stress testing the Czech household sector using microdata - practical applications in the policy-making process," IFC Bulletins chapters, in: Bank for International Settlements (ed.), Data needs and Statistics compilation for macroprudential analysis, volume 46, Bank for International Settlements.
    3. Simona Malovaná & Michal Hlaváček & Kamil Galuščák, 2018. "Citlivost českých domácností na úrokový a příjmový šok. Aplikace na mikroúdajích [Sensitivity of Czech Households to Interest Rate and Income Shock. Applications on Microdata]," Politická ekonomie, Prague University of Economics and Business, vol. 2018(5), pages 531-549.
    4. Ryszard Kowalski & Agnieszka Strzelecka & Agnieszka Wałęga & Grzegorz Wałęga, 2023. "Do Children Matter to the Household Debt Burden?," Journal of Family and Economic Issues, Springer, vol. 44(4), pages 1007-1022, December.
    5. Grzegorz Wałęga & Agnieszka Wałęga, 2021. "Over-indebted Households in Poland: Classification Tree Analysis," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 153(2), pages 561-584, January.

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    More about this item

    Keywords

    household debts; over-indebtedness; poverty;
    All these keywords.

    JEL classification:

    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • D91 - Microeconomics - - Micro-Based Behavioral Economics - - - Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making
    • I32 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Measurement and Analysis of Poverty

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