We analyse the effect of shocks to housing wealth and income before and after the Great Recession. We combine datasets containing information on expenditure, income, wealth and debt in a synthetic panel to understand how household indebtedness affects the response to income and wealth shocks. We...

In this paper we develop an analytical framework using the household utility maximization approach to model stability conditions to avoid household debt overhang. Our theoretical framework suggests that household debt stability is a function of five factors, namely the rate of interest, period...

Given the huge private debt in Cyprus, the risk of a recession is very high because of the compelling need for households and corporations to repair their balance sheets. The Central Bank now admits that it may take 10 years to tackle the huge non-performing loans problem. What they do not...

This paper investigates the effectiveness of an intervention that was targeted at a specific group of Dutch Social Assistance (SA) recipients with debt problems. With a large share of the income gains of work resumption were transferred to the creditors, these individuals experienced a strong a...

This paper investigates the effectiveness of an intervention that was targeted at a specific group of Dutch Social Assistance (SA) recipients with debt problems. With a large share of the income gains of work resumption were transferred to the creditors, these individuals experienced a strong a...

Both student loans and household debt are at their peaks. This paper investigates how student loans causally impact debt holdings of individuals in the medium-run using data from the National Longitudinal Survey of Youth 1997. To identify the causal effect of student loans on future debt...

The current dynamic of increasing credit card use juxtaposed with regulatory pressure on the credit card industry reflects our society's deep ambivalence about paying with plastic. This Review of Professor Ronald J. Mann's Charging Ahead: The Growth and Regulation of Payment Card Markets,...

This study analyzes the effect of individual finances (specifically creditworthiness and severely delinquent debt) on mortality risk. A large (approximately 170,000 individuals) subsample of a quarterly panel data set of individual credit reports is utilized in an instrumental variables design....

Purpose: Over the past a few decades, there has been an increasing body of research on debt and wellbeing. However, research on the potential effect of various debt portfolios on family financial wellbeing is limited. The purpose of this study is to fill this research gap by examining the...

Using panel data on individual borrowing characteristics and neighborhood income, we assess the impact of relative income on indebtedness and payment delinquencies. We find that a worsening in relative income vis-à-vis similarly aged neighbors leads to higher indebtedness, primarily due to...