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Attitudes Toward Debt and Debt Behavior

Author

Listed:
  • Johan Almenberg
  • Annamaria Lusardi
  • Jenny Säve-Söderbergh
  • Roine Vestman

Abstract

We introduce a novel survey measure of attitude toward debt. Matching our survey results with panel data on Swedish household balance sheets from registry data, we show that our debt attitude measure helps explain individual variation in indebtedness as well as debt build-up and consumption behavior in the period 2004–2007. As an explanatory variable, debt attitude compares well to a number of other determinants of debt, including education, risk-taking, and financial literacy. We also provide evidence that debt attitude is passed down along family lines and has a cultural element.

Suggested Citation

  • Johan Almenberg & Annamaria Lusardi & Jenny Säve-Söderbergh & Roine Vestman, 2018. "Attitudes Toward Debt and Debt Behavior," NBER Working Papers 24935, National Bureau of Economic Research, Inc.
    • Handle: RePEc:nbr:nberwo:24935
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    More about this item

    JEL classification:

    • D14 - Microeconomics - - Household Behavior - - - Household Saving; Personal Finance
    • D15 - Microeconomics - - Household Behavior - - - Intertemporal Household Choice; Life Cycle Models and Saving
    • D91 - Microeconomics - - Micro-Based Behavioral Economics - - - Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making

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