Effects of Family Life-Cycle Stages on Consumer Debts

Eunyoung, Baek; Hong, Gong‐Soog

doi:10.1023/b:jeei.0000039946.59422.5f

Cited by 91 publications

(95 citation statements)

References 22 publications

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“…However, while cross-sectional data cannot measure changes in households' well-being as they age over time, these data can be used to document differences in well-being across households at various stages in the life cycle in a given year. Several studies have found that even in a cross-sectional context, households at various stages of the life cycle differ with respect to their well-being, consumer debt choices, and portfolio allocation of wealth (Baek and Hong 2004;Milligan 2005;Poterba and Samwick 1997). Thus, another hypothesis tested in this study is whether economic well-being differs across young, middle-aged, and old households in a cross-sectional context.…”

Section: Conceptual Issues and Previous Studiesmentioning

confidence: 85%

A Comparison of the Economic Well‐Being of Farm and Nonfarm Households

Katchova

2008

American J Agri Economics

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This study compares the economic well-being of farm and nonfarm households using data from the Agricultural Resource Management Survey and the Survey of Consumer Finances. Comparisons are made in terms of income and wealth using parametric and nonparametric tests, regression analyses, and inequality measures. The results show that the economic well-being of households differs based on their degree of involvement in business activities and their life-cycle stages. The main conclusion is that the income of rural residence and intermediate farms is comparable to that of wage-earning nonfarm households, while commercial farms are similar in well-being to nonfarm households with businesses. Copyright 2008, Oxford University Press.

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Section: Conceptual Issues and Previous Studiesmentioning

confidence: 85%

A Comparison of the Economic Well‐Being of Farm and Nonfarm Households

Katchova

2008

American J Agri Economics

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“…Households borrow with the aim to smooth out consumption over the life cycle. The lifecycle stages are specified based on a range of variables namely age, employment status, marital status and the presence of children (Baek & Hong, 2004).…”

Section: Theoretical Framework Underpinning Debt Usementioning

confidence: 99%

The threshold effects of household indebtedness on multidimensional poverty

Ntsalaze

Ikhide

2017

IJSE

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DeclarationBy submitting this dissertation electronically, I declare that the entirety of the work contained therein is my own, original work, that I am the sole author thereof (save to the extent explicitly otherwise stated), that reproduction and publication thereof by Stellenbosch University will not infringe any third party rights and that I have not previously in its entirety or in part submitted it for obtaining any qualification.This dissertation includes two published and one accepted but not yet published original papers in peer-reviewed international journals. The fourth paper representing chapter eight is ready for submission for peer review. The development and writing of the papers (published and unpublished) were the principal responsibility of myself and, for each of the cases where this is not the case, a declaration is included in the dissertation indicating the nature and extent of the contributions of co-authors. AbstractGlobal household indebtedness has reached unprecedented levels over the past few decades.The household sector has had to cope with significant losses in income and wealth as well as the burden of debt service since the beginning of the financial crisis. Research focus on this phenomenon, together with its social implications, has grown. This study uses the National Income Dynamics Study (NIDS) data to empirically investigate the effects of household debt on multidimensional poverty. This was achieved through four independent research papers meant to address different angles of the subject. Chapter 5 provides a snapshot of the prevalence of over-indebtedness, using various international indicators and the National Credit Regulator (NCR) indicator, and describes which households are over-indebted. A total of eight percent of South African households are overindebted, and 61.4 percent of those households are found in the lowest income category (R0 -R2 000), spending more than 45 percent of their household income on debt repayments, which is beyond levels that are considered sustainable. The alarming revelation is that, according to the unsecured debt indicator, 15.2 percent of households are over-indebted, while 11 percent of households are driven below the relative income poverty line after making debt repayments. Stellenbosch University https://scholar.sun.ac.za 3The racial distribution indicates that households headed by Africans are overrepresented (79%).Most over-indebted households are found amongst those who own their places of residence (78.6%), do not receive government grants (71.7%), are male (53.8%), and have an unemployed household head (53.5%).Chapter 6 examines the presence of thresholds in the debt-poverty nexus at micro level, i.e. the tipping point above which debt is associated with more multidimensional poverty. By applying the Generalised Additive Model (GAM) using regression splines, the study finds the existence of critical tipping points between household debt service-to-income ratio and multidimensional poverty along with other explanatory variables (age...

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“…However, personal debt is not without risks. When used inappropriately, personal debt has a tendency to be the most important contributing factor to distress, financial difficulty or even bankruptcy, particularly when experiencing cash flow difficulties (Baek & Hong 2004;Berg 2005;Cava & Simon 2005;Kamleitner & Kirchler 2007).…”

Section: Effective Use Of Debtmentioning

confidence: 99%

Is Financial Capability Related to the Effective Use of Debt in Australia?

Ajzerle¹,

Brimble²,

Freudenberg³

2013

AABFJ

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Australians' high use of personal debt is, in part, attributable to the relaxation of the financial services regulation. There is concern that while debt has the potential to increase a person's wealth, if used ineffectively it can have the opposite effect. This paper details a study of 680 Australians to ascertain whether their financial capability is related to the effective use of personal debt. The findings suggest that it appears people with greater financial capability are more likely to use debt effectively. AbstractAustralians' high use of personal debt is, in part, attributable to the relaxation of the financial services regulation. There is concern that while debt has the potential to increase a person's wealth, if used ineffectively it can have the opposite effect. This paper details a study of 680 Australians to ascertain whether their financial capability is related to the effective use of personal debt. The findings suggest that it appears people with greater financial capability are more likely to use debt effectively.

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Effects of Family Life-Cycle Stages on Consumer Debts

Cited by 91 publications

References 22 publications

A Comparison of the Economic Well‐Being of Farm and Nonfarm Households

A Comparison of the Economic Well‐Being of Farm and Nonfarm Households

The threshold effects of household indebtedness on multidimensional poverty

Is Financial Capability Related to the Effective Use of Debt in Australia?

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