Fiscal stimulus and debt burden: evidence from Thailand’s first-car-buyer tax rebate program

Muthitacharoen, Athiphat; Samphantharak, Krislert; Chantarat, Sommarat

doi:10.1007/s10797-019-09549-6

Cited by 7 publications

(5 citation statements)

References 12 publications

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“…Thailand's household debt in the first quarter of the year 2019 (Q1/2019), according to the report by the Office of the National Economic and Social Development Council, was 12.97 trillion baht or 78.7% of the country's GDP; it implied that on average the debt per capita was as high as According to the survey by SCB (S.C., 2018) during Q1/2017, by considering the consumer loans that was classified according to the generation of the borrowers, it was seen that the majority of those indebted in all categories of loans were Gen Y: 56% for credit card debt, 41% for personal loans, 49% for home loans, and 46% for auto loans (see Table 1). The result from this survey was consistent with the study by Chantarat et. al., (2019) who found that the highest indebted ones were those in the group aged between 25 -35 years old and their debts mainly came from consumption loan and credit card.…”

Section: Introductionsupporting

confidence: 93%

From Financial Literacy to Financial Capability: A Preliminary Study of Difference Generations in Informal Labor Market

Amonhaemanon¹,

Vora-Sitta²

2020

JAFEB

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This study aims to investigate whether financial attitude links financial literacy to financial capability. To make sound financial decisions, one essentially requires a certain level of financial literacy-knowledge and skill in finance. Even more effective is when one's financial literacy could be developed into financial capability. The samples comprised 342 individuals from informal labor in the South of Thailand. The stratified multistage sampling technique was utilized to select the respondents, while the interview questionnaires were used to collect the data. By using SmartPLS 3.0, the data analysis included descriptive statistics and structural equation modeling (SEM). The result revealed that the one with the highest debt was Gen Y compared to Gen B and Gen X. Considering financial literacy, financial attitude, and financial capacity across generations, it was found that Gen Y had the highest average score in financial literacy and financial capacity, higher than that of Gen X and Gen B. The impact of financial literacy on financial capability through financial attitude, it was found that the impact on Gen B was higher than that of Gen X and Gen Y. With the right financial attitude, people of all generations would be equipped with a higher level of financial capability.

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Section: Introductionsupporting

confidence: 93%

From Financial Literacy to Financial Capability: A Preliminary Study of Difference Generations in Informal Labor Market

Amonhaemanon¹,

Vora-Sitta²

2020

JAFEB

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“…In the second half of 2011, the government's first-time car-buyer tax rebates scheme [FORIN3-MA] was introduced to stimulate automobile purchasing over motorcycles, which were historically Thais' preferred choice for urban mobility. The scheme offered a tax rebate up to 100,000 THB (Muthitacharoen et al, 2019), equivalent to the average yearly income of low-income households. At the same time, banks' lending policies [ECO5-MA] acted as a supporting economic force, providing more opportunities for the rising urban middle class to obtain personal credit [eco6-mi].…”

Section: Influence Of Lock-in Factors On Vehicle Purchasingmentioning

confidence: 99%

“…At the same time, banks' lending policies [ECO5-MA] acted as a supporting economic force, providing more opportunities for the rising urban middle class to obtain personal credit [eco6-mi]. The additional car purchases were even boosted in this period by competition across the banking industry, as many introduced subprime loans (Muthitacharoen et al, 2019). With loans authorized for many low-income applicants, and the above-mentioned subsidy accepted as a down payment, this interconnected web of economic forces and formal institutions at the macro scale shrank the gap between income and affordability.…”

Section: Influence Of Lock-in Factors On Vehicle Purchasingmentioning

confidence: 99%

How Does Socio-Technical Lock-In Cause Unsustainable Consumption in Cities? A Framework and Case Study on Mobility in Bangkok

Truong

Trencher

Matsubae

2022

Front. Sustain. Cities

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Consumption of raw materials, energy, manufactured goods, and services is increasingly concentrated in cities, as urbanization accelerates globally. Such consumption is influenced by complex interactions arising between the various socio-technical and natural systems that make up cities. To improve understanding of the interlinked factors that can perpetuate—or “lock-in”—unsustainable consumption, we build an explanatory framework that conceptually joins the literature on socio-technical systems and on urban consumption. Two questions guide our study: (1) What are the principal socio-technical systems in cities that influence consumption behavior? (2) How do these systems interact to lock urban dwellers into unsustainable consumption behavior? The resulting framework incorporates theories of socio-technical lock-in with factors relating to both “structure” and “agency” in consumption literature. Specifically, it describes the influence and interactions of physical, non-physical, and human systems on two interlinked scales: macro-scale (structure and collectively shared conditions) and micro-scale (agency and individually shaped conditions). To demonstrate the practical value of this framework, we apply it to a case study on mobility in Bangkok, Thailand. This allows us to systematically identify the interlinked mechanisms contributing to the growing dependence on and lock-in to individually owned passenger vehicles. Our study thus provides a comprehensive understanding of the multiplex drivers of consumption behavior, taking into account both structure and agency. The framework also provides a tool for other scholars to empirically identify lock-in mechanisms that hamper the adoption of more sustainable consumption behavior in other sectors and geographies.

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“…In addition, extended families remain widespread in Thailand where children live with their parents and inherit their land and house.25 Similarly, this finding is partly driven by the debt headcount in rural areas, which was very low (less than 10%). Considering only urban areas, the debt headcount is higher than 30%(Chantarat et al 2019). In addition, the Thai economy remains largely cash based due to its large informal sector; the use of credit cards is not widespread.…”

mentioning

confidence: 95%

“… See Chantarat et al (2018) for detail.27 This observation is likely due to the first-car buyer tax rebate scheme. SeeMuthitacharoen, Samphantharak, and Chantarat (2019) for the impact of the scheme on household debt in Thailand.Downloaded from http://www.mitpressjournals.org/doi/pdf/10.1162/adev_a_00141 by guest on 16 August 2021…”

mentioning

confidence: 99%

Household Debt and Delinquency over the Life Cycle

Chantarat

Lamsam²,

Samphantharak

et al. 2020

Asian Development Review

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This paper uses loan-level data from Thailand's National Credit Bureau to study household debt over the life cycle of borrowers. We decompose two aggregate and commonly used measures of debt—debt per capita and delinquency rate—into components that unveil the extensive and intensive margins of household indebtedness. We find a striking inverted-U life-cycle pattern of indebtedness as predicted by economic theories. However, peaks are reached at different ages for different loan products and different lenders. We also find that debt has expanded over time for all age groups. Younger cohorts seem to originate debt earlier in their lives than older generations. Meanwhile, older borrowers remain indebted well past their retirement age. Finally, we find a downward pattern of delinquency over the life cycle. Our findings have important policy implications on financial access and distress of households as well as on economic development and financial stability of the economy.

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Fiscal stimulus and debt burden: evidence from Thailand’s first-car-buyer tax rebate program

Cited by 7 publications

References 12 publications

From Financial Literacy to Financial Capability: A Preliminary Study of Difference Generations in Informal Labor Market

From Financial Literacy to Financial Capability: A Preliminary Study of Difference Generations in Informal Labor Market

How Does Socio-Technical Lock-In Cause Unsustainable Consumption in Cities? A Framework and Case Study on Mobility in Bangkok

Household Debt and Delinquency over the Life Cycle

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