Psychological Factors of Multiple Debt Repayment Strategies

Abstract

The article presents a review of the literature and the results of an empirical study of strategies for repayment of multiple debts in a laboratory experiment and their connection with the personality traits of the respondents (N = 348). The main strategies of debt repayment are identified - Rational, Semi-rational, Aversive, Distributive, Chaotic and Ignoring of small numbers. The smallest group in the empirical study is the group of respondents with Rational strategy. Respondents of all the groups, except Rational, were compared among themselves on personal characteristics. Respondents with the Semi-rational strategy, in contrast to respondents with other strategies, demonstrate a greater propensity for risk. An Aversive strategy is characterised by a tendency to reduce the number of debts and is demonstrated by respondents when performing various tasks. Respondents with a Chaotic strategy made multiple mistakes in the simulation and, in comparison with all other respondents, are less open to new experience. Respondents with a strategy for paying off debts Ignoring small numbers turned out to be more benevolent than Chaotic respondents and respondents with the Close to rational strategy.

The Use of Theory and Methods of Behavioural Economics in the Process of Making Financial Decisions

“…The empirical study of strategies for repayment of multiple debts described in Psychological Factors of Multiple Debt Repayment Strategies (Gagarina & Goroshnikova, 2018) with 350 respondents reflect six different decision-making groups depending on psychological traits and attitudes to risk (see Fig. 5):…”

Employment of Women, Gender Diversity and Gender Sensitisation in Indian Economy: A Critical Review

“…According to a 2018 World Economic Forum report, the labour force participation rate (LFPR) among females in India was 26.97 percent, while the world average stood at 48.47 percent in 2018. 3 The report of the Forum stated that the basic challenge of the Indian economy is to provide women empowerment through education and economic agency. The rate of women participation in India has been falling since 2005, when it was as high as 36.78.…”

“…Such specific indicators need to be looked at in the Indian context as well. Certain indicators such as health and education 1 URL: https://wcd.nic.in/schemes/beti-bachao-beti-padhaoscheme 2 URL: https://groww.in/p/savings-schemes/sukanya-samriddhi-yojana 3 World Economic Forum. The Global Gender Gap Report 2018.…”

“…When an individual needs to make decisions with reference to repayment of the debt taken for investment, the rationality of those individuals is bounded (e. g., they may decide to pay it in the next instalment) [3]. Such conditions might also influence the decision making, risk taking, competition and earning capacity of individuals as well as nations.…”