deregulation in Finland was similar to that in the other Nordic countries. As in Norway and Sweden, household indebtedness started … loans. Measured by the ratio of household debt to annual disposable income, household indebtedness peaked in 1990 at more … plummeted. High indebtedness and overcapacity especially in the domestic sector will require several years of adjusting. …

percentage change in GDP, an income surprise variable combined with lagged aggregate indebtedness, a real interest rate surprise … variable combined with lagged aggregate indebtedness, and a deregulation dummy. The innovation in this paper is the use of … surprise variables based on macroeconomic forecasts. According to the results, high indebtedness combined with negative …