On the surveys of household debt in Poland

Wałęga, Agnieszka; Wałęga, Grzegorz

doi:10.5604/01.3001.0014.0691

Cited by 3 publications

(1 citation statement)

References 22 publications

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“…Also, educated people more consciously use the opportunities offered to them by the financial market. These people understand the mechanisms of the modern economy to a greater extent, including the credit market's role, and they want to use it (Wałęga, 2012). Research results on the relationship between the level of education and household debt mostly confirm the positive relationship between these variables (Chien and DeVaney, 2001;Lee, Lown and Sharpe 2007;Tan, Yen, Loke, 2011;Wałęga, 2012;Haq, Ismail and Satar, 2018;Strzelecka, Kurdyś-Kujawska and Zawadzka 2020a;Hake and Poyntner, 2020).…”

Section: Literature Reviewmentioning

confidence: 99%

Why Households Borrow Money? Socio-Economic Factors Affecting Households Debts: A Model Approach

Strzelecka¹,

Zawadzka²

2020

ERSJ

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Purpose: This research aims to identify and assess the socioeconomic determinants of Central Pomerania household indebtedness (at the household level) using non-parametric statistical tests and multiple correspondence analysis. Design/Methodology/Approach: The source of data was a survey conducted among 1,000 households of Central Pomerania (Poland). First, it was determined whether there exists a statistically significant relationship between having debt and the socioeconomic characteristics of the households analyzed (using the chi-square test or the Fisher test). Next, a multiple correspondence analysis was used to identify and assess relationships between the categories of features that characterize the surveyed households' indebtedness. Findings: Using non-parametric statistical tests, it was established that there is a statistically significant relationship between debt and the following household characteristics: development phase, size and composition of the household, socioeconomic type, location of the household, a form of residential unit ownership, age of the household head, having economic education by the head of the household, and the level of average monthly income per person in the household. The most often indebted households were those whose main source of income was self-employment, with the number of members exceeding 3 persons and households with dependent children. Practical Implications: The results obtained in this research may be sources of information for credit institutions interested in adjusting the product offer to households' needs because these households-as our research results show-differ in several socioeconomic characteristics. Originality/Value: Our study complements the results of previous research on household debt determinants, confirming the important role of socioeconomic factors in the process of making financial decisions regarding debt.

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Section: Literature Reviewmentioning

confidence: 99%

Why Households Borrow Money? Socio-Economic Factors Affecting Households Debts: A Model Approach

Strzelecka¹,

Zawadzka²

2020

ERSJ

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Key methodological issues in the research on household wealth

Wroński

2019

Wiadomości Statystyczne. The Polish Statistician

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The interest of economists and policy makers in collecting data on house-hold wealth has been growing over the last decade (from the beginning of financial crisis in 2008). It has two fundamental reasons: wealth accumulation and growing inequalities as well as formulation of better public policies. The aim of the article is to discuss key methodological issues in the research on household wealth, to present solutions devel-oped by the OECD expert committee applied in the Household Finance and Consumption Survey (HFCS) and to identify areas that require further consideration. Since 2010 signifi-cant progress has been achieved in the measurement of private wealth. Further research on the adequate representation of the richest households in the research sample and concepts of wealth broader than private wealth should be encouraged.

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Influence of the subjective assessment of households’ financial situation on their debt

Duczkowski

Słowik²

2022

Wiadomości Statystyczne. The Polish Statistician

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The determinants of household debt have been the subject of many scientific studies where income was identified as the key factor influencing debt. This is because income determines creditworthiness in banks. At the same time, behavioural finance research highlights the importance of subjective factors for individuals’ financial decision-making. The aim of this paper is to verify the influence of the subjective assessment of households’ financial situation (also known as financial wellbeing) on their debt. The research was based on secondary data for the years 2009–2020 published by Statistics Poland and the National Bank of Poland. The study used linear regression, where time series related to debt were the dependent variables, and time series related to income and financial wellbeing were the explaining variables. The study confirmed that taking into account the subjective assessment of households’ financial situation allows more effective modelling of household debt than disposable income solely. The results also demonstrated that individuals assessing their financial situation as very good are more likely to get into debt than those who believe their material status to be average. Additionally, as the assessment of financial wellbeing improves, household debt in foreign currencies decreases.

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On the surveys of household debt in Poland

Cited by 3 publications

References 22 publications

Why Households Borrow Money? Socio-Economic Factors Affecting Households Debts: A Model Approach

Why Households Borrow Money? Socio-Economic Factors Affecting Households Debts: A Model Approach

Key methodological issues in the research on household wealth

Influence of the subjective assessment of households’ financial situation on their debt

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