| 来源类型 | Discussion paper
|
| 规范类型 | 论文
|
| 来源ID | DP11292
|
| DP11292 Financial Trouble Across Generations: Evidence from The Universe of Personal Loans in Denmark |
| Claus Thustrup Kreiner
|
| 发表日期 | 2016-05-23
|
| 出版年 | 2016
|
| 语种 | 英语
|
| 摘要 | Do people end up in financial trouble simply because of adverse shocks to income and wealth, or is financial trouble related to persistent differences in financial attitudes and behavior that may be transmitted from generation to generation? We address this question using a new administrative data set with longitudinal information about defaults for the universe of personal loans in Denmark. We provide non-parametric evidence showing that the default propensity is more than four times higher for individuals with parents who are in default compared to individuals with parents not in default. This intergenerational relationship is apparent soon after children move into adulthood and become legally able to borrow. The intergenerational relationship is remarkably stable across age groups, levels of loan balances, parental income levels, childhood school performance, time periods and different measures of financial trouble. Basic theory points to three possible explanations of the correlation across generations in financial trouble: (i) children and parents face common shocks; (ii) children and parents insure each other against adverse shocks; (iii) financial behavior differs across people and is transmitted across generations. Our evidence indicates that the last explanation is the most important. Finally, we show that the intergenerational correlation in financial trouble is not fully incorporated in interest setting on loans, pointing to adverse selection in the market for personal loans. |
| 主题 | Financial Economics
; Public Economics
|
| 关键词 | Household borrowing decisions
Default
Intergenerational dependency
|
| URL | https://cepr.org/publications/dp11292
|
| 来源智库 | Centre for Economic Policy Research (United Kingdom)
|
| 资源类型 | 智库出版物
|
| 条目标识符 | http://119.78.100.153/handle/2XGU8XDN/540110
|
推荐引用方式
GB/T 7714 |
Claus Thustrup Kreiner. DP11292 Financial Trouble Across Generations: Evidence from The Universe of Personal Loans in Denmark. 2016.
|
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