House prices are easing but the household-debt burden continues to rise

2019 ◽  
Keyword(s):  
House Prices ◽  
Household Debt ◽  
Debt Burden

Identification of excessive Russia's household debt burden

2021 ◽  
Vol 21 (1) ◽  
pp. 189-207
Author(s):  
Galina Gospodarchuk ◽  
Ekaterina Suchkova
Keyword(s):  
Financial Stability ◽  
Evaluation Method ◽  
Gap Analysis ◽  
Stability Index ◽  
Threshold Value ◽  
Federal State ◽  
Household Debt ◽  
Calculation Algorithm ◽  
Debt Burden ◽  
Household Sector

Modern trends characterized by increasing Russian household debt against the stagnation of real income of the population demonstrate the importance of analytical tools within the regulator. It helps identify the level of debt burden in household sector and to develop an analytical toolkit that makes it possible to reveal debt burden. The paper uses the methods of statistic and graphical analysis as well as comparative and GAP-analysis. The empirical analysis is based on data of the Federal State Statics Service and Bank of Russia over a period of 1.01.2007–1.01.2019. The study develops the methodology to create an indicator for household sector debt burden both on macro- and micro-level. Based on the methodology, we develop a new financial stability index of household sector and its calculation algorithm. We offer the evaluation method of threshold value of this index and determine its quantitative value. The findings concerning debt burden level in Russia’s household sector drawn on the basis of this indicator confirm its suitability for using as an additional diagnostic tool of Russia’s financial stability.

scholarly journals Household Debt and House Prices-at-risk: A Tale of Two Countries

2020 ◽  
Vol 2020 (042) ◽  
pp. 1
Author(s):  
Adrian Alter ◽  
Elizabeth Mahoney
Keyword(s):  
At Risk ◽  
House Prices ◽  
Household Debt

scholarly journals House Prices, Home Equity–Based Borrowing, and the US Household Leverage Crisis

2011 ◽  
Vol 101 (5) ◽  
pp. 2132-2156 ◽  
Author(s):  
Atif Mian ◽  
Amir Sufi
Keyword(s):  
Instrumental Variables ◽  
House Prices ◽  
Significant Fraction ◽  
Household Debt ◽  
Home Equity ◽  
Instrumental Variables Estimation ◽  
The Us ◽  
Credit Scores

Borrowing against the increase in home equity by existing homeowners was responsible for a significant fraction of the rise in US household leverage from 2002 to 2006 and the increase in defaults from 2006 to 2008. Instrumental variables estimation shows that homeowners extracted 25 cents for every dollar increase in home equity. Home equity–based borrowing was stronger for younger households and households with low credit scores. The evidence suggests that borrowed funds were used for real outlays. Home equity–based borrowing added $1.25 trillion in household debt from 2002 to 2008, and accounts for at least 39 percent of new defaults from 2006 to 2008. JEL: D14, R31

scholarly journals Profiling Some of the Dire Household Debt Determinants: A Metric Multidimensional Scaling Approach

2014 ◽  
Vol 6 (11) ◽  
pp. 858-867
Author(s):  
Ntebogang Dinah Moroke
Keyword(s):  
Multidimensional Scaling ◽  
South African ◽  
House Prices ◽  
Two Dimensions ◽  
Household Debt ◽  
Two Dimensional ◽  
Metric Multidimensional Scaling ◽  
Standardized Residuals ◽  
Reserve Bank ◽  
Best Fit

The purpose of this paper was to use the metric Multidimensional scaling (MDS) to explore the ten dire household debt determinants in the context of South Africa. Macroeconomic data used was collected from the South African reserve bank and Statistics South African websites for the first quarters of 1990 to 2013. SPSS 22 was used to execute the analysis. A Standardized Residuals Sum of Squares (STRESS 1) measure calculated as 0.00077confirmed the best fit of the MDS model and the Tucker’s Coefficient of Congruence implied that 99.9% of variance in the model is accounted for by the two dimensions. This was also a confirmation that the ten selected determinants can better be represented in a two dimensional perpetual map. The findings revealed two profiles of household debts. Gross domestic product and house prices are associated with high levels of household debts. The remainder of the determinants is found to have low effects. MDS demonstrated its effectiveness in classifying household debt determinants according to their contribution. Also revealed is that an MDS is a useful tool to use in quantifying the ubiquitous, but slimy, notion of similarity.

Comparison of advanced economies’ performance in bubbles mitigation

2019 ◽  
Vol 27 (4) ◽  
pp. 397-421
Author(s):  
Emilio Gallego Neira ◽  
Carlos Martínez de Ibarreta
Keyword(s):  
Design Methodology ◽  
House Prices ◽  
Seemingly Unrelated Regression ◽  
Household Debt ◽  
Fiscal Policies ◽  
Content Type ◽  
Residential Sector ◽  
Unrelated Regression ◽  
Advanced Economies ◽  
Dependent Variables

Purpose This paper aims to analyze the effectiveness of macroprudential and fiscal policies taken from a sample of ten advanced economies in relation to the mitigation of real-estate and credit bubbles by comparing their performance. Design/methodology/approach This comparison is elaborated with a seemingly unrelated regression methodology, which allows the assessment of individual countries’ performance and improves the estimation of the dependent variables versus an individual regression. Findings The analysis concludes that countercyclical measures have been more effective to control the growth of household debt. Furthermore, this study validates that macroprudential measures focused on the residential sector meet their objective of controlling the growth of house prices, whereas those macroprudential measures with more generic targets are effective to control the growth of household debt. Originality/value As opposed to previous panel-regression studies, which have analyzed the performance of macroprudential and fiscal measures in generic terms, this paper compares the performance of these tools in ten advanced economies. Based on the analysis performed, several recommendations are derived for policymakers.

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