In this study, we explore the relationship between the debt service ratio (DSR) and individual borrowers' ability to … withstand shocks in Malaysia. Using a micro-level dataset that matches borrowers' debt and income, we quantify the financial … financial and economic shocks on debt repayment, cost of living and variable income. The simulation allows us to differentiate …

This paper empirically investigates the relationship between the speed of buildup of private debt (household and … nonlinear effect. We find that the buildup of corporate debt−and not just household debt−can worsen recessions, especially in … basis of how quickly their private debt builds up. In addition to output recessions, we look at consumption and investment …