Household Debt and Social Interactions
| Autor: | Michael Haliassos, Giacomo Pasini, Dimitris Georgarakos |
|---|---|
| Rok vydání: | 2014 |
| Předmět: |
Consumption (economics)
Economics and Econometrics media_common.quotation_subject Household finance household debt social interactions mortgages consumer credit informal loans education jel:E21 consumer credit household debt Household finance informal loans mortgages social interactions Conspicuous consumption Social relation jel:G11 Accounting Debt Economics Demographic economics Financial distress Finance Household debt media_common |
| Zdroj: | Review of Financial Studies. 27:1404-1433 |
| ISSN: | 1465-7368 0893-9454 |
| DOI: | 10.1093/rfs/hhu014 |
| Popis: | 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. |
| Databáze: | OpenAIRE |
| Externí odkaz: |
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