Conspicuous consumption and household indebtedness

Lee, Kwan Ok; Mori, Masaki

doi:10.1111/1540-6229.12305

Cited by 13 publications

(6 citation statements)

References 45 publications

(81 reference statements)

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“…Millennials also had historically high rates of homeownership in their early 20s compared to previous generations. Finally, Lee, Mori, and Qian (2017) find that the relationship between conspicuous consumption and credit card debt in Singapore is concentrated among younger, male, single individuals.…”

Section: Implications Of Rising Household Debt On the Life Cyclementioning

confidence: 85%

“…In another study, Bricker, Ramcharan, and Krimmel (2014) link household financial decision data from SCF with neighborhood data from the American Community Survey and find that a household's position in the income distribution relative to its close neighbors is positively associated with its expenditure on high-status cars, its level of indebtedness, and the riskiness of its portfolio. Finally, a study of Singaporean households by Lee, Mori, and Qian (2017) provides more evidence. All else equal, households residing in condominiums (those who are more likely to care more about social status) spend substantially more on conspicuous goods, have more credit card debt, and have more delinquent debt on their credit cards than their counterparts living in subsidized public housing.…”

Section: B Rising Household Debtmentioning

confidence: 99%

See 1 more Smart Citation

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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Section: Implications Of Rising Household Debt On the Life Cyclementioning

confidence: 85%

Section: B Rising Household Debtmentioning

confidence: 99%

Household Debt and Delinquency over the Life Cycle

Chantarat

Lamsam²,

Samphantharak

et al. 2020

Asian Development Review

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show abstract

“…Although this study does not analyze the causality between indebtedness and demand for luxury goods, luxury good consumption may result in indebtedness. According to Lee and Mori (2019), luxury consumption in particular motivated by conspicuous consumption makes a significant contribution to indebtedness. Conspicuous consumption causes individuals to consume beyond their economic resources, which increases the amount of debt.…”

Section: Resultsmentioning

confidence: 99%

Lüks Mal Talebinin Belirleyicileri: Üç Avrupa Ülkesinde Karşılaştırmalı Bir Çalışma

Ergün¹

2021

Journal of Yaşar University

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Identifying the determinants of luxury consumption may produce positive results for marketing. This study is based on an online survey including the participants from Romania, Spain and Turkey, and it aims to reach possible factors that may affect the demand for luxury goods. It investigates the factors affecting the demand within the framework of purchasing luxury goods by using logistic regression. The analyses reveal a likelihood of positive relationship between the demand for luxury goods and financial future expectations, and show that those who do not consider themselves financially secure in the future have a higher likelihood of demand for luxury goods than those who feel secure about their financial future. The result also demonstrates that being in low-income classes has a likelihood of positive impact on purchasing conspicuous status goods. It can be concluded that compensating for feelings of powerlessness might increase demand for luxury goods. Luxury good demand of individuals spending according to their budget is likely to be higher than those who don't spend according to the planned budget. Individuals having positive economic behavior might spend for luxury within their budget limits. The results of this study may provide a new approach to shape the luxury demand of individuals. Considering the consumers' psychology for future expectation may be useful for marketing managers who intend to increase the demand for luxury goods.

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“…More generally, PPML has been employed to estimate models for durations (Abboud et al 2016 andCall et al 2018), investment in R&D (Cowan et al 2015, andGuceri andLiu 2015), debt (Oksanen et al, 2015 andMori 2021), losses and returns (Levieuge et al (2021), andPaniagua et al (2018)), value of mergers and acquisitions (Todtenhaupt et al 2020), values of illicit drug sales (Nurmi et al 2017), wind power capacity (Goetzke and Rave 2016), and to estimate models evaluating the effects of wild fires (Eskelson et al 2016 andPeterson et al 2019).…”

Section: Simulations and Applicationmentioning

confidence: 99%