Factors affecting household debt in Thailand

Lerskullawat, Attasuda

doi:10.1504/ijepee.2020.109584

Cited by 5 publications

(11 citation statements)

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“…Today, household over-indebtedness is a key concern in many parts of the world (Lerskullawat, 2020). The existing household over-indebtedness creates severe negative socio-economic consequences, such as mental illnesses, family problems, illegal and unethical activities, crimes, and loss of cultural and spiritual values (Muhammad & Iqbal, 2018;Barba & Pivetti, 2009).…”

Section: Systematic Reviewmentioning

confidence: 99%

“…From a broader perspective, macroeconomic factors influence the extent of household over-indebtedness (Meniago et al, 2013). Individuals in a country become over-indebted due to macroeconomic factors such as inflation, interest rates, employment, wages, real income, real GDP, aggregate consumption, income distribution, and aggregate savings (Lerskullawat, 2020;Barba & Pivetti, 2009). During the last few decades, household debt has increased significantly in most economies worldwide, ensuring smooth consumption while lowering household savings rates due to high levels of inflation (Ismail et al, 2020).…”

Section: Systematic Reviewmentioning

confidence: 99%

“…Interest rates have a long-term impact on the cost of borrowing money, and changes in interest rates would affect savers and borrowers differently (Coletta et al, 2019). In addition to these macroeconomic factors, foreign exchange rates, money supply, gross domestic production, etc., could also influence household over-indebtedness (Lerskullawat, 2020).…”

Section: Systematic Reviewmentioning

confidence: 99%

“…Nowadays, household over-indebtedness is a major concern in many parts of the world, as it creates severe negative socioeconomic consequences (Lerskullawat, 2020;Fatoki, 2015). Identifying the key causes of household over-indebtedness is a vital social need.…”

Section: Introductionmentioning

confidence: 99%

“…There are different studies on household over-indebtedness in different contexts. From the aggregate viewpoint, individuals in a country become over-indebted due to macroeconomic factors such as inflation, interest rate, aggregate consumption, and aggregate saving (Lerskullawat, 2020;Meniago et al, 2013). Further, some researchers have identified that over-indebtedness is influenced by demographic factors, such as age, gender, income, and education (Kumar & Goyal, 2016).…”

Section: Introductionmentioning

confidence: 99%

See 4 more Smart Citations

Behavioral Factors Affecting Household Over-Indebtedness: A Systematic Review

B. P. U. K. Biyanwila,

P. A. N. S. Anuradha

2023

VJM

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Household over-indebtedness is a significant issue in many parts of the world and has extremely detrimental socioeconomic effects. Separate studies have found that macroeconomic, demographic, and behavioral factors account for the majority of the variance in household over-indebtedness; however, behavioral components have received less attention. The purpose of this study is to review the behavioral factors that affect household over-indebtedness. To identify relevant empirical studies on household over-indebtedness, databases such as Scopus, Web of Science, Emerging Sources Citation Index, and Social Sciences Citation Index were reviewed. During this search, 267 articles were initially screened, but the PRISMA framework (Preferred Reporting Items for Systematic reviews and Meta-Analyses) was applied to select the most appropriate, well-cited, and recent 52 articles. The most significant behavioral factors of household over-indebtedness are financial literacy, risk perception, materialism, and emotions. This review reveals that behavioral factors have not been well established in many developing economies whereas the empirical findings in developed countries are consistent with behavioral theories. Further, this paper discloses that interaction of macroeconomic, demographic, and behavioral determinants on household over-indebtedness still needs further study. According to Keynes' general theory, individual financial decisions are influenced by macroeconomic circumstances. Moreover, Ando and Modigliani's life cycle hypothesis contends that demographic factors significantly influence individuals’ financial behavior. Our suggested conceptual model contains macroeconomic and demographic factors as mediators and moderators, respectively, between behavioral factors and household over-indebtedness. Once this model is tested, the findings may greatly aid governments, central banks, financial institutions, bank managers, credit officers, and other policymakers in their quest to discover answers to the problem of household over-indebtedness. Keywords: Household Over-Indebtedness, Financial Literacy, Risk Perception, Materialism, Emotions, Macroeconomic and Demographic Factors

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Section: Systematic Reviewmentioning

confidence: 99%

Section: Systematic Reviewmentioning

confidence: 99%

Section: Systematic Reviewmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

See 3 more Smart Citations

Behavioral Factors Affecting Household Over-Indebtedness: A Systematic Review

B. P. U. K. Biyanwila,

P. A. N. S. Anuradha

2023

VJM

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The influence and mechanism of female-headed households on household debt risk: empirical evidence from China

Tan,

Guo,

2024

Humanit Soc Sci Commun

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With the development of society, the number of female-headed households is on the rise. Based on the data from the China Household Finance Survey (CHFS) in 2019, this paper establishes a Tobit model to study the influence of female-headed households on household debt risk. Results indicate that female-headed households can substantially reduce household debt risk, and this conclusion still holds after overcoming endogeneity issues. Further tests on the mediating effect reveal that risk aversion and housing property holding have partial mediating effects and masking effects, respectively, in the path of female-headed households affecting household debt risk. In addition, the heterogeneity analysis indicates that the influence of female-headed households on household debt risk is more significant in third-tier cities, as well as in families without children, families without elderly members, and families with more than two elderly members. The conclusions of this paper provide a reference for the relevant policy measures to reduce household debt risk and promote gender equality.

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The spirit of Islamic economics versus loan sharks: investigating intentions to use loan sharks in Aceh, Indonesia

Kamal,

Muslem,

Mulyadi

et al. 2024

JIMA

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Purpose This study aims to determine whether the relationship between the Muslim community and moneylenders is important even though the practice of moneylenders is clearly forbidden in Islam. This study examines a model consisting of two major theories, namely, the theory of planned behavior (TPB) and marketing theory, and the existence of the religiosity variable as a moderator. Design/methodology/approach This study uses a structural equation modeling (SEM); SEM was chosen because it has effectiveness in revealing estimates of direct and indirect effects and shows moderating values. Manual questionnaires were distributed to 385 Acehnese who use loan shark services. Findings The combination of TPB and marketing theory constructs has a significant influence on the intention to use loan shark services. Then, the existence of the word-of-mouth variable significantly mediates the relationship between service and subjective norms and the intention to use loan shark services. In fact, the position of the religiosity variable has a significant negative effect on the intention to use loan shark services, and in terms of the moderating effect, it has been demonstrated that religiosity weakens the relationships between the services provided by loan sharks and the intention to use loan shark services. Research limitations/implications This study has several limitations. First, sampling is still limited and can still be expanded. Second, it is difficult to get data and there are people who refuse to be sampled. Third, this study succeeded in capturing the phenomenon of the behavioral intentions of people who have a religious spirit but are still associated with moneylenders. Practical implications This research provides material implications for the Aceh Government, especially in managing public funds. Indeed, Aceh is a productive province that has produced policies and regulations that encourage the Sharia economy; it is just that the use of social funds and Islamic philanthropy in Aceh has not been maximized, which has led to the growth of a network of moneylenders. Because of this, Aceh, which has been successful in producing the law for Islamic financial institutions, should also be successful in destroying the moneylender network by synergizing to create alternatives and financial solutions for the community, especially the lower and middle classes. Social implications This research explains that the level of religiosity can dampen and reduce the intention to use loan shark services; therefore, it is important for the community to understand the dangerous impact of using loan shark services and expand the role of community leaders in socializing the idea of lending money to loan sharks. Originality/value Due to the lack of studies on the behavior of Muslims using the services of moneylenders, therefore, this study provides new knowledge of the literature on the economic behavior of Muslim communities who continue to use the services of moneylenders. This study develops TPB theory and marketing theory in one model and involves the religiosity variable as a moderator.

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Factors affecting household debt in Thailand

Cited by 5 publications

References 0 publications

Behavioral Factors Affecting Household Over-Indebtedness: A Systematic Review

Behavioral Factors Affecting Household Over-Indebtedness: A Systematic Review

The influence and mechanism of female-headed households on household debt risk: empirical evidence from China

The spirit of Islamic economics versus loan sharks: investigating intentions to use loan sharks in Aceh, Indonesia

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