Which Households Use Consumer Credit in Europe?

Magri, Silvia; Pico, Raffaella; Rampazzi, Cristiana

doi:10.2139/ssrn.1998749

Cited by 15 publications

(10 citation statements)

References 10 publications

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“…Zajaczkowski and Zochowski () examined data from the Polish Household Budget Survey to analyse the distribution of debt burden ratio across the individuals in Poland and found that low‐income individuals exhibit higher debt service to income ratio. Similarly, using EU‐SILC data for a selection of European countries between 2005 and 2008, Magri, Pico, and Rampazzi () found that a share of consumers who borrow in the consumer credit market is poor in income and more at risk of over‐indebtedness given their inability to face unexpected expenses. Again, we had no a priori hypothesis on the effect of income as a specific moderator in the association between impulsivity and over‐indebtedness.…”

Section: Introductionmentioning

confidence: 99%

A meta‐analytic investigation of consumer over‐indebtedness: The role of impulsivity

Frigerio

Ottaviani

Vandone

2020

Int J Consumer Studies

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In the past decade, evidence has been accumulated on the relationship between impulsivity and over‐indebtedness. Nevertheless, the magnitude of such association is still considered marginal compared to traditional socio‐demographic and economic factors, with the important consequence that impulsivity continues to be ignored in policy interventions for preventing and dealing with over‐indebtedness. The aim of this study was to meta‐analyse existing studies to answer the question: Are higher levels of impulsivity associated with greater over‐indebtedness? Scopus and Web of Science databases were searched for English language studies. Seventeen studies were eligible for the analysis. The random effect model yielded a significant positive association between impulsivity and over‐indebtedness (Hedges' g = .40). Type of over‐indebtedness (debt holding vs. unmanageable debt) and work status (percentage of employed individuals) significantly moderated this association. Results are discussed in terms of implications and recommendations for future research, policy and practice.

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Section: Introductionmentioning

confidence: 99%

A meta‐analytic investigation of consumer over‐indebtedness: The role of impulsivity

Frigerio

Ottaviani

Vandone

2020

Int J Consumer Studies

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“…The share of over-indebted households is only 0.7 per cent when using the 25 per cent cut point for non-collateralized debts, given the low levels of usage of consumer credit among Italian households and the relatively low average amount of credit per household (Magri et al, 2011). About 3.9 per cent of households are estimated to be poor and indebted or to have debt servicing costs that take them below the poverty line.…”

Section: How Many Households Are Over-indebted?mentioning

confidence: 99%

Over-Indebtedness in Italy: How Widespread and Persistent Is It?

Iezzi

2016

SSRN Journal

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The purpose of this paper is to examine the measures of over-indebtedness proposed in the literature and to apply them to the Italian case from 2008 to 2014 by using the wide array of information available from the Bank of Italy's survey on households. The numerous measures of over-indebtedness are critically analysed from both a cross-sectional and a historical perspective. The panel also enables us to analyse the transition into and out of over-indebtedness. Moreover, by using the Eurosystem's Household Finance and Consumption Survey (HFCS), we can compare the over-indebtedness of Italian households with that of other euro-area countries. The paper also addresses the issue of the measurement errors that could bias both the level of over-indebtedness and estimates of the transition into and out of it.

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“…On the demand side, considering European data, Magri et al (2011) show that this type of short-term debt is primarily used both by larger households with youngest and well educated heads, and by poorer households. Delinquencies (i.e., problems in repaying consumer credit) are more frequent among poor households, and more common for the unemployed relative to other positions.…”

Section: Proxying Time Preferencesmentioning

confidence: 99%