Household debt and social interactions : [Version 18 Januar 2013]
- Debt-induced crises, including the subprime, are usually attributed exclusively to supply-side factors. We uncover an additional factor contributing to debt culture, namely social influences emanating from the perceived average income of peers. Using unique information from a representative household survey of the Dutch population that circumvents the need to define 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 check the robustness of our results using several approaches to rule out spurious associations and handle correlated effects.
Author: | Dimitris Georgarakos, Michael HaliassosORCiDGND, Giacomo Pasini |
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URN: | urn:nbn:de:hebis:30:3-296532 |
URL: | http://ssrn.com/abstract=2208516 |
DOI: | https://doi.org/10.2139/ssrn.2208516 |
Parent Title (German): | SAFE working paper series ; No. 1 |
Series (Serial Number): | SAFE working paper (1) |
Publisher: | Goethe-Univ., House of Finance, Sustainable Architecture for Finance in Europe, SAFE |
Place of publication: | Frankfurt am Main |
Document Type: | Working Paper |
Language: | English |
Year of Completion: | 2013 |
Year of first Publication: | 2013 |
Publishing Institution: | Universitätsbibliothek Johann Christian Senckenberg |
Release Date: | 2013/04/15 |
Tag: | consumer credit; household debt; household finance; informal loans; mortgages; social interactions |
Issue: | Version 18 Januar 2013 |
Page Number: | 47 |
HeBIS-PPN: | 336921284 |
Institutes: | Wirtschaftswissenschaften / Wirtschaftswissenschaften |
Wissenschaftliche Zentren und koordinierte Programme / House of Finance (HoF) | |
Wissenschaftliche Zentren und koordinierte Programme / Center for Financial Studies (CFS) | |
Dewey Decimal Classification: | 3 Sozialwissenschaften / 33 Wirtschaft / 330 Wirtschaft |
Sammlungen: | Universitätspublikationen |
Licence (German): | Deutsches Urheberrecht |