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Attitudes Toward Debt and Debt Behavior

Author

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

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 spending 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 suggests that debt attitude is passed down along family lines and has a cultural element.

Suggested Citation

  • Lusardi, Annamaria & Almenberg, Johan & Säve-Söderbergh, Jenny & Vestman, Roine, 2020. "Attitudes Toward Debt and Debt Behavior," CEPR Discussion Papers 14801, C.E.P.R. Discussion Papers.
    • Handle: RePEc:cpr:ceprdp:14801
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    More about this item

    Keywords

    Personal finance; Spending; Intergenerational transmission; Attitude survey; Household borrowing decisions;
    All these keywords.

    JEL classification:

    • D14 - Microeconomics - - Household Behavior - - - Household Saving; Personal Finance
    • D91 - Microeconomics - - Micro-Based Behavioral Economics - - - Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making
    • E21 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Consumption; Saving; Wealth
    • G51 - Financial Economics - - Household Finance - - - Household Savings, Borrowing, Debt, and Wealth

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