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. 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.
| Author: | Dimitris Georgarakos, Michael HaliassosORCiDGND, 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: | Universitätsbibliothek Johann Christian Senckenberg |
| Release Date: | 2012/04/03 |
| Tag: | Consumer Credit; Household Debt; Household Finance; Informal Loans; Mortgages; Social Interactions |
| Issue: | Version 1 März 2012 |
| Page Number: | 47 |
| HeBIS-PPN: | 311803695 |
| Institutes: | Wirtschaftswissenschaften / Wirtschaftswissenschaften |
| 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 |
