Household debt and social interactions : [Version 1 März 2012]

Debt-induced crises, including the subprime, are usually attributed exclusively to supply-side factors. We examine the role of social influences on debt culture, emanating from perceived average income of peers. Utilizin
Debt-induced crises, including the subprime, are usually attributed exclusively to supply-side factors. We examine the role of social influences on debt culture, emanating from perceived average income of peers. Utilizing unique information from a household survey representative of the Dutch population, that circumvents the issue of defining the social circle, we consider collateralized, consumer, and informal loans. We find robust social effects on borrowing, especially among those who consider themselves poorer than their peers; and on indebtedness, suggesting a link to financial distress. We employ a number of approaches to rule out spurious associations and to handle correlated effects.
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Metadaten
Author:Dimitris Georgarakos, Michael Haliassos, Giacomo Pasini
URN:urn:nbn:de:hebis:30:3-240863
Parent Title (German):Center for Financial Studies (Frankfurt am Main): CFS working paper series ; No. 2012,05
Series (Serial Number):CFS working paper series (2012, 05)
Publisher:Goethe-Univ., House of Finance, Center for Financial Studies
Place of publication:Frankfurt am Main
Document Type:Working Paper
Language:English
Year of Completion:2012
Year of first Publication:2012
Publishing Institution:Univ.-Bibliothek Frankfurt am Main
Release Date:2012/04/03
Tag:Consumer Credit; Household Debt; Household Finance; Informal Loans; Mortgages; Social Interactions
Issue:Version 1 März 2012
Pagenumber:47
HeBIS PPN:311803695
Institutes:Wirtschaftswissenschaften
Center for Financial Studies (CFS)
Dewey Decimal Classification:330 Wirtschaft
JEL-Classification:E21 Consumption; Saving; Wealth
G10 General
Sammlungen:Universitätspublikationen
Licence (German):License Logo Veröffentlichungsvertrag für Publikationen

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