publication . Article . 2012

THE DETERMINANTS OF HOUSEHOLD DEBT DEFAULT

Natalia Gallardo; A Rodrigo Alfaro;
Open Access English
  • Published: 01 Apr 2012
  • Publisher: ILADES. Universidad Alberto Hurtado.
Abstract
In this paper, we study household debt default behavior in Chile using survey data. Previous research in this area suggests financial and personal variables help estimate individual and group probabilities of default. We study mortgage and consumer default separately, as the default decisions and overall borrower behavior are different for each type of debt. Our study finds that income and income-related variables are the only significant and robust variables that explain default for both types of debt. Demographic or personal variables are affected by only one type of debt but not more. For example, the level of education is a factor that affects mortgage defau...
Subjects
free text keywords: Credit risk, mortgage default, Riesgo de crédito, no-pago hipotecario, General Economics, Econometrics and Finance, Riesgo de crédito, no-pago hipotecario., Consumer debt, Debt, media_common.quotation_subject, media_common, Loss given default, Business, Household debt, Probability of default, Non-performing loan, Actuarial science, Default, jel:G14, jel:G17
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