Abstract
AbstractThe aim of this paper is to analyse the evolution of Spanish households’ indebtedness and financial vulnerability over the course of this century using micro-data from the Household Finance and Consumption Survey. Our results show a growing debt participation of Spanish households and an increase in the stock of outstanding debt of indebted households, a trend that reversed with the end of the Great Recession. Moreover, the percentage of financially vulnerable households according to three indicators grew dramatically until the end of the downward phase of the last economic cycle and showed considerable signs of improvement during the second half of 2010s. These results, nonetheless, call attention to the number of Spanish households being unable to service their debts in the face of an economic downturn.
Funder
Ministerio de Economía y Competitividad
Universidade da Coruña
Publisher
Springer Science and Business Media LLC
Reference30 articles.
1. Albacete N, Lindner P (2013) Household vulnerability in Austria: a microeconomic analysis based on the household finance and consumption survey. Financ Stab Rep 25:57–73
2. Aller C, Grant C (2018) The effect of the financial crisis on default by Spanish households. J Financ Stab 36:39–52
3. Anderloni L, Vandone D (2008) Households over-indebtedness in the economic literature. Universitá degli Studi di Milano Working Paper no. 46
4. Ando A, Modigliani F (1963) The “life-cycle” hypothesis of saving: aggregate implications and rests. Am Econ Rev 53(1):55–84
5. Bricker J, Bucks B, Kennickell AB, Mach T, Moore KB (2011) Surveying the Aftermath of the Storm: Changes in Family Finances from 2007 to 2009. Finance and Economics Discussion Series 17, Board of Governors of the Federal Reserve Bank