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The Relationship Between Sociability and Household Debt

Author

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  • Altundere, Merve Büşra

Abstract

This paper examines the influence of social interaction on household debt with using the data from the Survey of Health, Ageing and Retirement in Europe. I investigate whether sociability (participation in social activities like charity work, sport club and educational course) is related with the tendency of holding debt and the amount of debt held. For my total sample consisting of thirteen European countries, I find that sociability has sizeable positive effects on both mortgage debt and non-mortgage debt. It shows that sociable households are more likely to borrow and have greater amounts conditional on borrowing compared to the others. Nevertheless, my country-level findings present a considerable variation across countries in their social effects on debt.

Suggested Citation

  • Altundere, Merve Büşra, 2014. "The Relationship Between Sociability and Household Debt," MPRA Paper 90617, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:90617
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    References listed on IDEAS

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    Cited by:

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    2. Marc Bittner, 2021. "Which borrower in CESEE gets which loan? Evidence from the OeNB Euro Survey," Focus on European Economic Integration, Oesterreichische Nationalbank (Austrian Central Bank), issue Q4/21, pages 77-92.
    3. Cloudio Kumbirai Chikeya & Lungile Ntsalaze, 2025. "Determinants of Household Debt: A Systematic Review of the Literature," Economies, MDPI, vol. 13(3), pages 1-36, March.
    4. Agnieszka Strzelecka & Danuta Zawadzka, 2020. "Why Households Borrow Money? Socio-Economic Factors Affecting Households Debts: A Model Approach," European Research Studies Journal, European Research Studies Journal, vol. 0(Special 2), pages 820-839.

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    Keywords

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    JEL classification:

    • D14 - Microeconomics - - Household Behavior - - - Household Saving; Personal Finance
    • G02 - Financial Economics - - General - - - Behavioral Finance: Underlying Principles

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