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 |
|---|---|
| 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 |
