Working Paper: CEPR ID: DP14801
Authors: Johan Almenberg; Annamaria Lusardi; Jenny Svesderbergh; Roine Vestman
Abstract: We introduce a novel survey measure of attitude toward debt. Matching our survey results with panel data on Swedish household balance sheets from registry data, we show that our debt attitude measure helps explain individual variation in indebtedness as well as debt build-up and spending behavior in the period 2004–2007. As an explanatory variable, debt attitude compares well to a number of other determinants of debt, including education, risk-taking, and financial literacy. We also provide evidence that suggests that debt attitude is passed down along family lines and has a cultural element.
Keywords: personal finance; spending; intergenerational transmission; attitude survey; household borrowing decisions
JEL Codes: D14; D91; E21; G51
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| Negative attitudes towards debt (G51) | Lower debt-to-income ratios (G51) |
| Discomfort with debt (G51) | Reduced spending (H69) |
| Debt attitudes of respondents (G51) | Debt attitudes of parents (G51) |
| Learned attitudes (C92) | Individual debt behavior (G51) |
| Foreign-born individuals (F22) | Discomfort with debt (G51) |