Household Debt and Credit: Economic Issues and Data Problems

Bertola, Giuseppe; Hochguertel, Stefan

doi:10.1111/j.1468-0300.2007.00181.x

Cited by 22 publications

(8 citation statements)

References 68 publications

(78 reference statements)

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“…A major issue complicating any attempts at comparison is that national banks and statistical offices release figures on credit use based on different definitions and broken down in different ways. More generally, measurement of credit use is an issue (Bertola & Hochguertel, 2007; Betti et al., 2001). This is crucial because cultural variations most likely influence what credit is used for and which source of credit is tapped into.…”

Section: Discussionmentioning

confidence: 99%

Credit use: Psychological perspectives on a multifaceted phenomenon

2011

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Consumer borrowing is a highly topical and multifaceted phenomenon as well as a popular subject for study. We focus on consumer credit use and review the existing literature. To categorize what is known we identify four main psychological perspectives on the phenomenon: credit use as (1) a reflection of the situation, (2) a reflection of the person, (3) a cognitive process, and (4) a social process. On top of these perspectives we view credit use as a process that entails three distinct phases: (1) processes before credit acquisition, (2) processes at credit acquisition, and (3) processes after credit acquisition. We review the international literature along a two-tier structure that aligns the psychological perspectives with a process view of credit. This structure allows us to identify systematic concentrations as well as gaps in the existing research. We consolidate what is known within each perspective and identify what seems to be most urgently missing. Some of the most important gaps relate to research studying credit acquisition from the perspective of credit use as a reflection of the person or as a social process. In particular, research on credit use as a reflection of the person appears to focus exclusively on the first stage of the credit process. We conclude with a discussion that reaches across perspectives and identifies overarching gaps, trends, and open questions. We highlight a series of implicit linkages between perspectives and the geographical regions in which studies related to the perspectives were conducted. Beyond diagnosing a geographical imbalance of research, we argue for future research that systematically addresses interrelations between perspectives. We conclude with a set of global implications and research recommendations.

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Section: Discussionmentioning

confidence: 99%

Credit use: Psychological perspectives on a multifaceted phenomenon

2011

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“…According to Lilico (2010), households mostly plan to take up loans in order to smooth their consumption over their life-cycles or to make investment in consumer durables (like houses and cars) and human capital, whereas they might also take up unplanned loans as a result of an unexpected unemployment, a temporary drop in income or a sudden additional cost. For these different purposes, households incur different kinds of debt to finance their needs: informal debts from their family and friends, mortgages and other types of collateralized debts, or uncollateralized consumer debts such as private loans, checking account overdrafts and credit card balances (Bertola et al 2007).…”

Section: Household Debtmentioning

confidence: 99%

The Relationship Between Sociability and Household Debt

Altundere¹

2016

ADAM AKADEMİ Sosyal Bilimler Dergisi

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This paper examines the influence of social interaction on household debt with using the data from the Survey of Health, Ageing and Retirement in Europe. I investigate whether sociability (participation in social activities like charity work, sport club and educational course) is related with the tendency of holding debt and the amount of debt held. For my total sample consisting of thirteen European countries, I find that sociability has sizeable positive effects on both mortgage debt and non-mortgage debt. It shows that sociable households are more likely to borrow and have greater amounts conditional on borrowing compared to the others. Nevertheless, my country-level findings present a considerable variation across countries in their social effects on debt.

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“…Muellbauer's (2007) general observation that housing is the most important component of household wealth for OECD countries is then particularly true for Italian households (see also Bertola and Hochguertel 2008).…”

Section: Introductionmentioning

confidence: 99%

The Effect of House Prices on Household Consumption in Italy

Calcagno¹,

Fornero

Rossi

2009

J Real Estate Finan Econ

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This paper studies the effect of a change in real estate wealth on the consumption behaviour of Italian households, using the Bank of Italy's Survey of Household Income and Wealth dataset. We relate annual household consumption to capital gains in housing, controlling for characteristics such as age. In line with the empirical predictions of our model, we find the oldest households-which are less affected by the higher costs of future rent-to be the most affected by increases in real net housing wealth. Younger households, on the other hand, are not significantly affected in their consumption decisions by house price increases. We also take into account the fact that benefiting from capital gains is conditional on owning housing wealth and estimate the different impacts of house price changes on the savings behaviours of both homeowners and renters. Our estimates suggest that house price increases raise consumption not only for homeowners but also for renters.

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Household Debt and Credit: Economic Issues and Data Problems

Cited by 22 publications

References 68 publications

Credit use: Psychological perspectives on a multifaceted phenomenon

Credit use: Psychological perspectives on a multifaceted phenomenon

The Relationship Between Sociability and Household Debt

The Effect of House Prices on Household Consumption in Italy

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