Household financial vulnerability: An empirical analysis

Anderloni, Luisa; Bacchiocchi, Emanuele; Vandone, Daniela

doi:10.1016/j.rie.2012.03.001

Cited by 146 publications

(236 citation statements)

References 20 publications

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“…We also constructed proxies to account for behavioral characteristics; our results were in line with previous work. In particular, as in McCarthy (2011) and Anderloni et al (2012), impatience individuals are more likely to experience financial distress, whereas organized individuals are less likely to experience such distress. 12 In addition, the introduction of these variables reduced the impact of financial literacy.…”

Section: Robustness Checksmentioning

confidence: 78%

“…In particular, McCarthy (2011) shows that while demographic and economic variables are important determinants of who gets into financial difficulties, behavioural factors also matter, having a stronger impact than education or financial literacy. Relying on survey of Italian households, Anderloni et al (2012) find that impulsive individuals are more subject to financial distress. Walker (1996), after controlling for demographics and income variables, also finds that time-preferences, financial management and attitudes towards debt are important predictors of the level of household's financial distress.…”

Section: Literature Reviewmentioning

confidence: 99%

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Job insecurity and financial distress

Madia¹,

Moretti

2014

Applied Financial Economics

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This paper investigates the effects of different job categories on households' likelihood of experiencing financial distress. Given imperfect financial markets and the absence of unemployment subsidies, households with less secure jobs are likely to experience drops in income more frequently than households with well-protected jobs. Households' abilities to deal with financial decisions (i.e. financial literacy) can mitigate these problems. Our results suggest that greater job insecurity increases the probability of being in financial distress similarly than other working statuses (e.g. unemployment), and in some cases even more (i.e. part-time workers). However, a high level of financial literacy can counterbalance this effect, especially for atypical workers. This research has benefited from discussions with a number of people. We would like to thank Fabrizio Coricelli, Vasso Ioannidou, Paola Valbonesi, who provided valuable feedback. We would also like to thank participants of the internal seminar at Royal Holloway,

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Section: Robustness Checksmentioning

confidence: 78%

Section: Literature Reviewmentioning

confidence: 99%

Job insecurity and financial distress

Madia¹,

Moretti

2014

Applied Financial Economics

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“…Likely, one of the precise definitions of financial vulnerability which present by Anderloni and Vandone (2012) are as following: "Households consider as financial vulnerable due to over commitment to excess indebtedness and also other financial instability's condition, such as the inability to overcome daily life expenses, difficulties in paying utility bills and unable for rental payment. "…”

Section: An Overview Of Studies Conducted On Financial Vulnerability mentioning

confidence: 99%

Review of Financial Vulnerability Studies

Lee

Sabri

2017

ABR

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Financial vulnerability has become an emerging concern to many parties and a number of factors in households' financial vulnerability are believed to influence households' financial well-being. Financial vulnerability is a status of financial instability or a situation to the exposure of financial risk and shock. Thus, the focus of this paper is to overcome the problem of how to justify the variables of financial vulnerability in order to achieve the financial well-being among the households. Moreover, this current paper concludes the financial vulnerability studies in eight countries which provide the similarities and differences in measuring financial vulnerability. Hence, the evidence review revealed that high financial vulnerable households are characterized by low income or low liquid assets, high balance sheet leverage, disability to cope with financial stress and financial crisis.

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“…In addition, there are other streamlined formulations defining problematic financial situation of individuals according to scientific literature. For instance, "financial fragility" (Jappelli et al, 2008), "financial vulnerability" (Anderloni et al, 2012) and etc. These concepts also define that a person has financial problems and is unable to fulfil his obligations on time.…”

Section: Theoretical Aspects Of Insolvency Interpretationmentioning

confidence: 99%

“…Their influence on solvency is a subject to sociocultural environment in the society, traditions and other circumstances, which are difficult to define quantifiable. According to Anderloni et al (2012) the influence of the latter factors should be researched "…in different countries in order to exploit cross-country differences...".…”

Section: Introductionmentioning

confidence: 99%

Indirect Factors Affecting Personal Solvency: Empirical Analysis Of Lithuanian Consumer Credit Market

Jurevičienė

Taujanskaitė

Sukacevskyte³

2016

ESJ

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The aim of this article is to analyze the interrelationship between solvencies of consumer credits customers and indirect factors such as borrowing motivation as well as demographical and socioeconomic factors characterizing the borrowers' personality. The results of this research were obtained using statistical software SPSS. Systemic scientific literature analysis, correlation analysis of randomly selected records from consumer credit contracts, Student t-test criteria application for testing hypothesis, analysis of Levine's and Pearson's correlation criteria are used in the article. In addition, previously carried out expert evaluation research results were compared with actual consumer credit contracts data. The novelty of this research is classification of factors influencing personal solvency into direct and indirect. The influence of indirect factors (demographic, socioeconomic and borrowing motives) has been investigated in risky consumer credit market of Lithuania. The results show that the most influencing indirect factor is the purpose of consumer credit.

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Household financial vulnerability: An empirical analysis

Cited by 146 publications

References 20 publications

Job insecurity and financial distress

Job insecurity and financial distress

Review of Financial Vulnerability Studies

Indirect Factors Affecting Personal Solvency: Empirical Analysis Of Lithuanian Consumer Credit Market

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