Financial trouble across generations: Evidence from the universe of personal loans in Denmark
By: Kreiner, C.T., Petersen, S.L. and Olsen, L.C.W
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Material type: 
BookPublisher: The Economic Journal: A Journal of the Royal Economic Society Description: 130(625), Jan, 2020: p.233-262.
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The Economic Journal: A Journal of the Royal Economic SocietySummary: This article uses administrative data with longitudinal information about defaults for the entire Danish population to analyse the driving forces behind financial problems. Non-parametric evidence shows that the default propensity is more than four times higher for individuals with parents in default compared with that for individuals with parents not in default. This intergenerational relationship is apparent soon after children move into adulthood and become legally able to borrow, and is remarkably stable across parental income levels, childhood school performances, levels of loan balances and time periods. The evidence indicates that inherited financial behaviour is important for explaining differences in financial trouble. – Reproduced
| Item type | Current location | Call number | Vol info | Status | Date due | Barcode |
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Articles
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Indian Institute of Public Administration | 130(625), Jan, 2020: p.233-262 | Available | AR124687 |
This article uses administrative data with longitudinal information about defaults for the entire Danish population to analyse the driving forces behind financial problems. Non-parametric evidence shows that the default propensity is more than four times higher for individuals with parents in default compared with that for individuals with parents not in default. This intergenerational relationship is apparent soon after children move into adulthood and become legally able to borrow, and is remarkably stable across parental income levels, childhood school performances, levels of loan balances and time periods. The evidence indicates that inherited financial behaviour is important for explaining differences in financial trouble. – Reproduced
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