Macroeconomic factors, consumer behavior, and bankcard default rates

Compulsive buying: Does it matter how it’s measured?

“…And, from a more ''macro'' perspective, many individuals with the same disorder can ultimately cause problems for the larger social structure ultimately creating a public policy issue (Ritzer, 1995). Furthermore, higher incidences of compulsive buying and consumption can be linked to more personal bankruptcies, higher loan delinquency rates, less availability of credit, higher unemployment and interest rates, and the utilization of exorbitant levels of energy and natural resources (Csikszentmihalyi, 2000;Grieb, Hegji, & Jones, 2001;Roberts, 1998;Roberts & Jones, 2001). Compulsive buying may also discourage participation in and support of family, community, and charitable activities (Roberts & Pirog, 2004).…”

Demographics, attitude, personality and credit card features correlate with credit card debt: A view from China

“…The third stream of research talked about other debt behaviors such as delinquency and bankruptcy (e.g., Agarwal & Liu, 2003;Grieb, Hegji, & Jones, 2001;Stavins, 2000). Agarwal and Liu (2003) set up a duration model to test the effect of unemployment rates on delinquency rates and got the robust result that higher unemployment rates led to a rise in delinquency rates.…”

“…Agarwal and Liu (2003) set up a duration model to test the effect of unemployment rates on delinquency rates and got the robust result that higher unemployment rates led to a rise in delinquency rates. In addition to unemployment rates, Grieb et al (2001) integrated more factors to predict delinquency. They found that bankcard delinquency rates were significantly positively related to the supply of consumer credit, consumer-debt ratio, and the unemployment rate, and were significantly negatively related to current interest rates.…”

“…Because the absolute amount of debt is cumulative (Norvilitis et al, 2006;Stone & Maury, 2006), it cannot represent the level, intensity, or severity of debt. Although the majority of research used the amount of outstanding balance (amount of debt) as the dependent variable (Davies & Lea, 1995;Grieb et al, 2001;Livingston & Lunt, 1992, Norvilitis et al, 2006Pinto & Mansfield, 2006;Zhu & Meeks, 1994), some sensitive researchers have recognized this problem and then used the debt-to-income ratio (DeVaney & Lytton, 1995;Norvilitis et al, 2003;Stone & Maury, 2006;Tokunaga, 1993). Since it is difficult to define income for some special groups such as students or freelancers, some constructive research has been done using payment behavior to measure debt (Bowers, 1979;DeVaney & Lytton, 1995;Robb & Sharpe, 2009).…”

On the correlation between fraud and default risk

“…Several other papers have studied the determinants of consumer delinquency and personal bankruptcy, mainly for the U.S. Grieb et al (2001) look at time series data to study consumer behaviour, macroeconomic factors, and credit card default. They use aggregated quarterly data over 19 years and find that unemployment leads to a rise in credit card default rates.…”