The Determinants of Household Debt: A Cross-Country Analysis

Coletta, Massimo; Bonis, Riccardo De; Piermattei, Stefano

doi:10.2139/ssrn.2571267

Cited by 34 publications

(9 citation statements)

References 123 publications

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“…This variable result was positive but insignificant indicating that a one percent increase in GDP per capita leads to increases in consumer loans by 0.62 percent. This is consistent with Coletta et al (2014), Miyajima (2017), Stepanyan and Guo (2011), Ming-Yen Teoh, Chong, and Mid Yong (2013). The insignificance of GDP per capita could be due to the monetary authority regulations that limit the monthly payment of personal loans to be 33 percent of borrower monthly salary.…”

Section: Long-run Elasticitysupporting

confidence: 88%

“…The available literature considers consumers lending a function of supply-side factors such as banks liquidity and demand factor including income growth and interest rate. Coletta, De Bonis, and Piermattei (2014) found that high per capita GDP is positively associated with household debt across 33 developing countries. Ahmed, Amanullah, and Hamid (2009) found that consumer loans in Pakistan were positively associated with banks liquidity, level of income and banking sector reforms.…”

Section: Literature Reviewmentioning

confidence: 99%

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Macroeconomic Determinants of Consumer Lending in Saudi Arabia

Alnefaee

2019

Journal of Accounting, Business and Finance Research

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This paper empirically investigates the macroeconomic variables that influence consumer lending in Saudi Arabia using quarterly data for the period of 1996-2017. The Johansen and Juselius (1990) multivariate cointegration test were used to examine the impact of banks liquidity, interest rate, oil prices and GDP per capita on consumer lending. The test results indicate the existence of the long-term relationship and the empirical results show that consumer lending is positively influenced by a change in banks liquidity, growth in oil prices and GDP per capita. Contrary to expectation, the interest rate was positive and significant. The modified Granger causality test in Error Correction Model framework reports bidirectional causality from banks liquidity to consumer lending and vice versa, while unidirectional causality from GDP per capita and interest rate to consumer lending. The main finding of the paper is to encourage the monetary authority to allow for a gradual phase-out of restrictions on the number of personal loans as well as enhancing consumer protection mechanism to prohibit unfair contractual terms in the agreements.

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Section: Long-run Elasticitysupporting

confidence: 88%

Section: Literature Reviewmentioning

confidence: 99%

Macroeconomic Determinants of Consumer Lending in Saudi Arabia

Alnefaee

2019

Journal of Accounting, Business and Finance Research

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“…The literature usually considers two groups of factors that affect the level of HHs' debt of credit and loans. These are (i) demand factors and (ii) associated with the force of supply [Coletta et al 2014].…”

Section: Determinants Of Households Debtmentioning

confidence: 99%

“…If demand cannot be met due to insufficient temporary income, savings are used as well as external sources of financing, mainly in the form of credit products. In this case, smoothing consumption takes place [Coletta et al 2014]. It should be noted that the generation of arrears in dwelling payments is de facto a form of raising funds for the part of consumption outside the HHs.…”

Section: Determinants Of Households Debtmentioning

confidence: 99%

“…These are in particular the following: (i) level of creditor's and debtor's protection (among others, in the context of consumer bankruptcy, effectiveness of recovery), (ii) availability of information on the reliability of borrowers, (iii) tax regulations (e.g. possibility to deduct part of the mortgage tax rate in the Netherlands) [Coletta et al 2014], (iv) regulatory loan-to-value (LTV) [Alpanda, Zubairy 2017].…”

Section: Determinants Of Households Debtmentioning

confidence: 99%

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Modelling of arrears in payments for dwelling using artificial neural networks

Jasiński¹,

Bochenek²

2020

Informatyka Ekonomiczna

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The study presents the construction process of a model that forecasts arrears in dwelling payments in individual municipalities in Poland depending on the values of economic data from previous years. This enables to estimate arrears that will arise in the investigated municipalities in the year of analysis. The model constructed on the basis of artificial neural networks, which is a tool from the area of artificial intelligence, was used to carry out forecasts. More than one hundred thousand networks with multilayer perceptron (MLP) and radial basis function (RBF) architectures were tested. The MAPE for prediction of the number of indebted dwellings in municipalities with at least 50 indebted premises was 6.08%. The correctness of forecasts in the area of the direction of changes of household debt in municipalities between 2014 and 2015 was 76.84%.

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The Influence of Cultural Values on Household Debt: A Study in 39 Countries

Shostya

Banai

2023

Globalization, Human Rights and Populism

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The Determinants of Household Debt: A Cross-Country Analysis

Cited by 34 publications

References 123 publications

Macroeconomic Determinants of Consumer Lending in Saudi Arabia

Macroeconomic Determinants of Consumer Lending in Saudi Arabia

Modelling of arrears in payments for dwelling using artificial neural networks

The Influence of Cultural Values on Household Debt: A Study in 39 Countries

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