Prior research has found that job loss, as proxied for by regional unemployment rates, is a weak predictor of mortgage default. In contrast, using micro data from the PSID, this paper finds that job loss and adverse financial shocks are important determinants of mortgage default. Households with...

Significant parts of populations in developed countries frequently worry and ruminate about their finances. Financial worry and rumination can have serious psychological consequences, resulting in lower psychological well-being, mental-health problems, and impaired cognitive functioning. The...

Financial literacy is essential for making key financial decisions related to saving, borrowing, and investment. Although numerable studies have been conducted to find elements of financial literacy, most of them focus on developed countries. This study aims to determine characteristics that...

Portuguese Abstract: Este estudo utiliza dados do Survey of Consumer Finances (SCF) de 2007 e 2013 para examinar a propensão à poupança das famílias americanas no período de pré e pós-crise econômica, baseado-se no modelo de dois períodos de consumo/poupança de Bowman, Minehart e Rabin...

This study examines the demographic and socioeconomic factors explaining financial literacy in Japan by decomposing financial literacy into financial knowledge, attitude, and behavior, which provides a deeper understanding of the relationships. We used a large dataset from a national survey...

The famous saying “keeping up with the Joneses” is a generational behavior that is still deeply interwoven in the behavioral fabric of our modern-day society. This paper aims to address and contribute to the existing literature by investigating the determinants of individual non-mortgage...

We show that household heads with a strong internal economic locus of control are more likely to hold equity and hold a larger share of equity in their investment portfolio. This relation holds when we control for economic preferences and possible confounders such as financial literacy,...

The authors exploit new data from the Panel Study of Income Dynamics (PSID) to provide a more systematic and detailed analysis of household-level employment, income, and expense shocks to mortgage default decisions than has been possible before. These new data provide very different answers...

In this piece of research, we inspect the influence of individual financial knowledge and financial behavior on the probability of experiencing financial distress. Using the 2015 National Financial Capability Study, we examine three measures of financial distress related to bill payment,...

Recovery of consumer lending has facilitated growth in expenditures on ultimate consumption and brought about stability of households' savings amid the ongoing decline of real incomes. However, in the long-term prospect this situation will put at risk both the fi nancial stability of households...