The role of financial position on consumer indebted-ness. An empirical analysis in Italy
The paper focuses on the consumer credit market in Italy and on the related risk of over-indebtedness. Using survey panel data, we investigate the impact of overindebtedness on consumption behaviour, evaluating in particular if consumer credit is used to cover gaps in income and if this is associated with an increased and diffused inadequacy of financial and economic conditions of indebted households. Results highlight that a relatively consistent part of consumer credit is concentrated in the hands of financially fragile individuals. Moreover, when considering the amount of debt measured in relative terms, being in a difficult financial position adds 1.0 percentage points to the risk of over-indebtedness compared to households without any financial and economic difficulty
|Date of creation:||Sep 2012|
|Date of revision:|
|Contact details of provider:|| Postal: |
Fax: +39 010 209 5223
Web page: http://www.dep.unige.it/
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Gropp, Reint & Scholz, John Karl & White, Michelle J, 1997.
"Personal Bankruptcy and Credit Supply and Demand,"
The Quarterly Journal of Economics,
MIT Press, vol. 112(1), pages 217-51, February.
- Yvonne McCarthy, 2011.
"Behavioural Characteristics and Financial Distress,"
BCL working papers
59, Central Bank of Luxembourg.
- McCarthy, Yvonne, 2011. "Behavioural Characteristics and Financial Distress," Research Technical Papers 6/RT/11, Central Bank of Ireland.
- McCarthy, Yvonne, 2011. "Behavioural characteristics and financial distress," Working Paper Series 1303, European Central Bank.
- Do, Q-T & Iyer, S. & Joshi, S., 2006. "The Economics of Consanguinity," Cambridge Working Papers in Economics 0653, Faculty of Economics, University of Cambridge.
- Tullio Jappelli & Marco Pagano, 1999.
"Information Sharing, Lending and Defaults: Cross-Country Evidence,"
CSEF Working Papers
22, Centre for Studies in Economics and Finance (CSEF), University of Naples, Italy.
- Jappelli, Tullio & Pagano, Marco, 2002. "Information sharing, lending and defaults: Cross-country evidence," Journal of Banking & Finance, Elsevier, vol. 26(10), pages 2017-2045, October.
- Jappelli, Tullio & Pagano, Marco, 1999. "Information Sharing, Lending and Defaults: Cross-Country Evidence," CEPR Discussion Papers 2184, C.E.P.R. Discussion Papers.
- Stephen Zeldes, .
"Consumption and Liquidity Constraints: An Empirical Investigation,"
Rodney L. White Center for Financial Research Working Papers
24-85, Wharton School Rodney L. White Center for Financial Research.
- Zeldes, Stephen P, 1989. "Consumption and Liquidity Constraints: An Empirical Investigation," Journal of Political Economy, University of Chicago Press, vol. 97(2), pages 305-46, April.
- Stephen P. Zeldes, . "Consumption and Liquidity Constraints: An Empirical Investigation," Rodney L. White Center for Financial Research Working Papers 16-88, Wharton School Rodney L. White Center for Financial Research.
- Annamaria Lusardi & Daniel Schneider & Peter Tufano, 2011.
"Financially Fragile Households: Evidence and Implications,"
CeRP Working Papers
116, Center for Research on Pensions and Welfare Policies, Turin (Italy).
- Annamaria Lusardi & Daniel Schneider & Peter Tufano, 2011. "Financially Fragile Households: Evidence and Implications," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 42(1 (Spring), pages 83-150.
- Annamaria Lusardi & Daniel J. Schneider & Peter Tufano, 2011. "Financially Fragile Households: Evidence and Implications," NBER Working Papers 17072, National Bureau of Economic Research, Inc.
- Fabbri, Daniela & Padula, Mario, 2004.
"Does poor legal enforcement make households credit-constrained?,"
Journal of Banking & Finance,
Elsevier, vol. 28(10), pages 2369-2397, October.
- Daniela FABBRI & Mario PADULA, 2003. "Does Poor Legal Enforcement Make Households Credit-Constrained?," FAME Research Paper Series rp81, International Center for Financial Asset Management and Engineering.
- Hall, Robert E, 1978. "Stochastic Implications of the Life Cycle-Permanent Income Hypothesis: Theory and Evidence," Journal of Political Economy, University of Chicago Press, vol. 86(6), pages 971-87, December.
- King, Mervyn A. & Leape, Jonathan I., 1998. "Wealth and portfolio composition: Theory and evidence," Journal of Public Economics, Elsevier, vol. 69(2), pages 155-193, June.
- Jappelli Tullio & Pagano Marco & Di Maggio Marco, 2013.
"Households' indebtedness and financial fragility,"
Journal of Financial Management, Markets and Institutions,
Società editrice il Mulino, issue 1, pages 23-46, January.
- Do, Quy-Toan & Iyer, Sriya & Joshi, Shareen, 2006.
"The economics of consanguineous marriages,"
Policy Research Working Paper Series
4085, The World Bank.
- Heckman, James, 2013.
"Sample selection bias as a specification error,"
Publishing House "SINERGIA PRESS", vol. 31(3), pages 129-137.
- Daniela Fabbri & Mario Padula, 2001. "Judicial Costs and Household Debt," CSEF Working Papers 65, Centre for Studies in Economics and Finance (CSEF), University of Naples, Italy.
- Barro, Robert J., 1974.
"Are Government Bonds Net Wealth?,"
3451399, Harvard University Department of Economics.
- Luisa ANDERLONI & Emanuele BACCHIOCCHI & Daniela VANDONE, 2011. "Household financial vulnerability: an empirical analysis," Departmental Working Papers 2011-02, Department of Economics, Management and Quantitative Methods at Università degli Studi di Milano, revised 03 Nov 2011.
- Cox, Donald & Jappelli, Tullio, 1993.
"The Effect of Borrowing Constraints on Consumer Liabilities,"
Journal of Money, Credit and Banking,
Blackwell Publishing, vol. 25(2), pages 197-213, May.
- Donald Cox & Tullio Japelli, 1993. "The Effect Of Borrowing Constraints On Consumer Liabilities," Boston College Working Papers in Economics 228, Boston College Department of Economics.
- Cavalletti Barbara & Lagazio Corrado & Vandone Daniela, 2011. "Consumer Credit in Italy and Financial Fragility," Economia dei Servizi, Società editrice il Mulino, issue 1, pages 79-94.
- David Leece, 2000. "Choice of mortgage instrument, liquidity constraints and the demand for housing debt in the UK," Applied Economics, Taylor & Francis Journals, vol. 32(9), pages 1121-1132.
- Jappelli, Tullio, 1990. "Who Is Credit Constrained in the U.S. Economy?," The Quarterly Journal of Economics, MIT Press, vol. 105(1), pages 219-34, February.
- Gianni Betti & Neil Dourmashkin & Mariacristina Rossi & Ya Ping Yin, 2007. "Consumer over-indebtedness in the EU: measurement and characteristics," Journal of Economic Studies, Emerald Group Publishing, vol. 34(2), pages 136-156, May.
- Charles Grant, 2007. "Estimating credit constraints among US households," Oxford Economic Papers, Oxford University Press, vol. 59(4), pages 583-605, October.
- Charles Grant & Mario Padula, 2006. "Informal Credit Markets, Judicial Costs and Consumer Credit: Evidence from Firm Level Data," CSEF Working Papers 155, Centre for Studies in Economics and Finance (CSEF), University of Naples, Italy.
- Crook, Jonathan N. & Edelman, David B. & Thomas, Lyn C., 2007. "Recent developments in consumer credit risk assessment," European Journal of Operational Research, Elsevier, vol. 183(3), pages 1447-1465, December.
- R. Glenn Hubbard & Kenneth L. Judd, 1986. "Liquidity Constraints, Fiscal Policy, and Consumption," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 17(1), pages 1-60.
- Silvia Magri, 2002. "Italian households' debt: determinants of demand and supply," Temi di discussione (Economic working papers) 454, Bank of Italy, Economic Research and International Relations Area.
When requesting a correction, please mention this item's handle: RePEc:gea:wpaper:8/2012. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Marcello Montefiori)
If references are entirely missing, you can add them using this form.