Emergency finance in Australian households An empirical analysis of capacity and sources
This paper examines demographic and socioeconomic characteristics as predictors of emergency finance in Australian households. The data is drawn from the most recent Household Expenditure Survey Confidentialised Unit Record Files (CURF) and relate to 6,892 probability-weighted households. Emergency finance is defined in terms of the ability to raise $2,000 within one week and its potential sources include own savings and loans from deposit-taking institutions, finance companies, credit cards, family and friends and welfare or community organisations. Characteristics examined included family structure and composition, source and level of household income, age, sex and marital status, ethnic background and housing value. Binary logistic models are used to identify the source and magnitude of factors associated with the ability to raise emergency finance and the likelihood of choosing each method of raising finance. The results indicate that the presence of children, the number of dependents and income-earning units, the age, sex and ethnicity of the household head, dependency upon government pensions and benefits, homeownership and disposable income are significant determinants of the capacity to raise emergency finance. However, the demographic and socioeconomic factors examined are generally better at predicting mainstay sources of finance such as own savings and loans from deposit-taking institutions and credit card usage than loans from family and friends and welfare or community organisations.
|Date of creation:||20 Nov 2003|
|Contact details of provider:|| Postal: GPO Box 2434, BRISBANE QLD 4001|
Web page: http://www.bus.qut.edu.au/faculty/economics/
More information through EDIRC
References listed on IDEAS
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.:
- Ian Domowitz & Robert L. Sartain, 1999. "Determinants of the Consumer Bankruptcy Decision," Journal of Finance, American Finance Association, vol. 54(1), pages 403-420, 02.
- Dean M. Maki, 2000. "The growth of consumer credit and the household debt service burden," Finance and Economics Discussion Series 2000-12, Board of Governors of the Federal Reserve System (U.S.).
- DeVaney, Sharon A. & Lytton, Ruth H., 1995. "Household insolvency: A review of household debt repayment, delinquency, and bankruptcy," Financial Services Review, Elsevier, vol. 4(2), pages 137-156.
- Walker, Catherine M., 1996. "Financial management, coping and debt in households under financial strain," Journal of Economic Psychology, Elsevier, vol. 17(6), pages 789-807, December.
When requesting a correction, please mention this item's handle: RePEc:qut:dpaper:163. 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: (Angela Fletcher)
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 references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link 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 profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.