THE DETERMINANTS OF HOUSEHOLD DEBT DEFAULT

In this paper, we study household debt default behavior in Chile using survey data. Previous research in this area suggests financial and personal variables help estimate individual and group probabilities of default. We study mortgage and consumer default separately, as the default decisions and ov...

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Autores principales:	ALFARO,RODRIGO, GALLARDO,NATALIA
Lenguaje:	English
Publicado:	ILADES. Universidad Alberto Hurtado. 2012
Materias:	Credit risk mortgage default
Acceso en línea:	http://www.scielo.cl/scielo.php?script=sci_arttext&pid=S0718-88702012000100003
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spelling	oai:scielo:S0718-887020120001000032013-07-19THE DETERMINANTS OF HOUSEHOLD DEBT DEFAULTALFARO,RODRIGOGALLARDO,NATALIA Credit risk mortgage default In this paper, we study household debt default behavior in Chile using survey data. Previous research in this area suggests financial and personal variables help estimate individual and group probabilities of default. We study mortgage and consumer default separately, as the default decisions and overall borrower behavior are different for each type of debt. Our study finds that income and income-related variables are the only significant and robust variables that explain default for both types of debt. Demographic or personal variables are affected by only one type of debt but not more. For example, the level of education is a factor that affects mortgage default, whereas the determinants of consumer debt default include the age of the household head, and the number of people within the household that contribute to the total family income. We find that the probability of default decreases as the family income increases, and that our estimations are consistent with other studies similar to ours.info:eu-repo/semantics/openAccessILADES. Universidad Alberto Hurtado.Revista de análisis económico v.27 n.1 20122012-04-01text/htmlhttp://www.scielo.cl/scielo.php?script=sci_arttext&pid=S0718-88702012000100003en10.4067/S0718-88702012000100003
institution	Scielo Chile
collection	Scielo Chile
language	English
topic	Credit risk mortgage default
spellingShingle	Credit risk mortgage default ALFARO,RODRIGO GALLARDO,NATALIA THE DETERMINANTS OF HOUSEHOLD DEBT DEFAULT
description	In this paper, we study household debt default behavior in Chile using survey data. Previous research in this area suggests financial and personal variables help estimate individual and group probabilities of default. We study mortgage and consumer default separately, as the default decisions and overall borrower behavior are different for each type of debt. Our study finds that income and income-related variables are the only significant and robust variables that explain default for both types of debt. Demographic or personal variables are affected by only one type of debt but not more. For example, the level of education is a factor that affects mortgage default, whereas the determinants of consumer debt default include the age of the household head, and the number of people within the household that contribute to the total family income. We find that the probability of default decreases as the family income increases, and that our estimations are consistent with other studies similar to ours.
author	ALFARO,RODRIGO GALLARDO,NATALIA
author_facet	ALFARO,RODRIGO GALLARDO,NATALIA
author_sort	ALFARO,RODRIGO
title	THE DETERMINANTS OF HOUSEHOLD DEBT DEFAULT
title_short	THE DETERMINANTS OF HOUSEHOLD DEBT DEFAULT
title_full	THE DETERMINANTS OF HOUSEHOLD DEBT DEFAULT
title_fullStr	THE DETERMINANTS OF HOUSEHOLD DEBT DEFAULT
title_full_unstemmed	THE DETERMINANTS OF HOUSEHOLD DEBT DEFAULT
title_sort	determinants of household debt default
publisher	ILADES. Universidad Alberto Hurtado.
publishDate	2012
url	http://www.scielo.cl/scielo.php?script=sci_arttext&pid=S0718-88702012000100003
work_keys_str_mv	AT alfarorodrigo thedeterminantsofhouseholddebtdefault AT gallardonatalia thedeterminantsofhouseholddebtdefault AT alfarorodrigo determinantsofhouseholddebtdefault AT gallardonatalia determinantsofhouseholddebtdefault
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THE DETERMINANTS OF HOUSEHOLD DEBT DEFAULT

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