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This study analyzes the effect of individual finances (specifically creditworthiness and severely delinquent debt) on … is utilized in an instrumental variables design. The possibility of the reverse causality of bad health causing debt and … 2005 residence. Worsening creditworthiness and increases in severely delinquent debt are found to lead to increases in …
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unsustainable levels of debt. Using survey data from South Africa, we confirm that poor people are indeed overly optimistic, and … also that optimism is positively and significantly related to debt accumulation. …
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