Household indebtedness in the European Union countries: Going beyond the mainstream interpretation
Autor(a) principal: | |
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Data de Publicação: | 2021 |
Outros Autores: | |
Tipo de documento: | Artigo |
Idioma: | eng |
Título da fonte: | Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) |
Texto Completo: | http://hdl.handle.net/10071/22575 |
Resumo: | This paper develops a panel data econometric analysis in order to determine the main macroeconomic causes of household indebtedness in the European Union countries from 1995 to 2019. During that time, household indebtedness reached unprecedented and unsustainable levels, which played a crucial role in the emergence of the last financial and economic crisis. This is not clearly well interpreted by the mainstream economics, which advocates that household indebtedness is just an instrument to smooth consumption in a continuous process of utility maximization over life. This paper estimates a model according to which the household indebtedness depends on seven macroeconomic causes, namely housing prices, financial asset prices, personal income inequality, the households’ labour income, welfare state expenditures, the working-age population and interest rates. This paper finds that housing prices, welfare state expenditures and interest rates impact positively on household indebtedness in the European Union countries, whilst the financial asset prices, personal income inequality and households’ labour income impact negatively on household indebtedness in the European Union countries. This paper also finds that the fall of household labour income and the rise of the housing prices have been main triggers of household indebtedness in the European Union countries since 1995. |
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Household indebtedness in the European Union countries: Going beyond the mainstream interpretationEuropean UnionHouseholds’ IndebtednessDados em painel -- Panel dataFixed Effects Two-Stage Least SquaresThis paper develops a panel data econometric analysis in order to determine the main macroeconomic causes of household indebtedness in the European Union countries from 1995 to 2019. During that time, household indebtedness reached unprecedented and unsustainable levels, which played a crucial role in the emergence of the last financial and economic crisis. This is not clearly well interpreted by the mainstream economics, which advocates that household indebtedness is just an instrument to smooth consumption in a continuous process of utility maximization over life. This paper estimates a model according to which the household indebtedness depends on seven macroeconomic causes, namely housing prices, financial asset prices, personal income inequality, the households’ labour income, welfare state expenditures, the working-age population and interest rates. This paper finds that housing prices, welfare state expenditures and interest rates impact positively on household indebtedness in the European Union countries, whilst the financial asset prices, personal income inequality and households’ labour income impact negatively on household indebtedness in the European Union countries. This paper also finds that the fall of household labour income and the rise of the housing prices have been main triggers of household indebtedness in the European Union countries since 1995.DINÂMIA'CET-Iscte2021-05-17T10:41:23Z2021-05-07T00:00:00Z2021-05-07info:eu-repo/semantics/publishedVersioninfo:eu-repo/semantics/articleapplication/pdfhttp://hdl.handle.net/10071/22575eng10.15847/dinamiacet-iul.wp.2021.03Tomás, InêsBarradas, Ricardoinfo:eu-repo/semantics/openAccessreponame:Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos)instname:Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informaçãoinstacron:RCAAP2023-11-09T17:42:14Zoai:repositorio.iscte-iul.pt:10071/22575Portal AgregadorONGhttps://www.rcaap.pt/oai/openaireopendoar:71602024-03-19T22:19:44.148989Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) - Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informaçãofalse |
dc.title.none.fl_str_mv |
Household indebtedness in the European Union countries: Going beyond the mainstream interpretation |
title |
Household indebtedness in the European Union countries: Going beyond the mainstream interpretation |
spellingShingle |
Household indebtedness in the European Union countries: Going beyond the mainstream interpretation Tomás, Inês European Union Households’ Indebtedness Dados em painel -- Panel data Fixed Effects Two-Stage Least Squares |
title_short |
Household indebtedness in the European Union countries: Going beyond the mainstream interpretation |
title_full |
Household indebtedness in the European Union countries: Going beyond the mainstream interpretation |
title_fullStr |
Household indebtedness in the European Union countries: Going beyond the mainstream interpretation |
title_full_unstemmed |
Household indebtedness in the European Union countries: Going beyond the mainstream interpretation |
title_sort |
Household indebtedness in the European Union countries: Going beyond the mainstream interpretation |
author |
Tomás, Inês |
author_facet |
Tomás, Inês Barradas, Ricardo |
author_role |
author |
author2 |
Barradas, Ricardo |
author2_role |
author |
dc.contributor.author.fl_str_mv |
Tomás, Inês Barradas, Ricardo |
dc.subject.por.fl_str_mv |
European Union Households’ Indebtedness Dados em painel -- Panel data Fixed Effects Two-Stage Least Squares |
topic |
European Union Households’ Indebtedness Dados em painel -- Panel data Fixed Effects Two-Stage Least Squares |
description |
This paper develops a panel data econometric analysis in order to determine the main macroeconomic causes of household indebtedness in the European Union countries from 1995 to 2019. During that time, household indebtedness reached unprecedented and unsustainable levels, which played a crucial role in the emergence of the last financial and economic crisis. This is not clearly well interpreted by the mainstream economics, which advocates that household indebtedness is just an instrument to smooth consumption in a continuous process of utility maximization over life. This paper estimates a model according to which the household indebtedness depends on seven macroeconomic causes, namely housing prices, financial asset prices, personal income inequality, the households’ labour income, welfare state expenditures, the working-age population and interest rates. This paper finds that housing prices, welfare state expenditures and interest rates impact positively on household indebtedness in the European Union countries, whilst the financial asset prices, personal income inequality and households’ labour income impact negatively on household indebtedness in the European Union countries. This paper also finds that the fall of household labour income and the rise of the housing prices have been main triggers of household indebtedness in the European Union countries since 1995. |
publishDate |
2021 |
dc.date.none.fl_str_mv |
2021-05-17T10:41:23Z 2021-05-07T00:00:00Z 2021-05-07 |
dc.type.status.fl_str_mv |
info:eu-repo/semantics/publishedVersion |
dc.type.driver.fl_str_mv |
info:eu-repo/semantics/article |
format |
article |
status_str |
publishedVersion |
dc.identifier.uri.fl_str_mv |
http://hdl.handle.net/10071/22575 |
url |
http://hdl.handle.net/10071/22575 |
dc.language.iso.fl_str_mv |
eng |
language |
eng |
dc.relation.none.fl_str_mv |
10.15847/dinamiacet-iul.wp.2021.03 |
dc.rights.driver.fl_str_mv |
info:eu-repo/semantics/openAccess |
eu_rights_str_mv |
openAccess |
dc.format.none.fl_str_mv |
application/pdf |
dc.publisher.none.fl_str_mv |
DINÂMIA'CET-Iscte |
publisher.none.fl_str_mv |
DINÂMIA'CET-Iscte |
dc.source.none.fl_str_mv |
reponame:Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) instname:Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informação instacron:RCAAP |
instname_str |
Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informação |
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RCAAP |
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RCAAP |
reponame_str |
Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) |
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Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) |
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Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) - Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informação |
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1799134757628411904 |