Credit card debt puzzle: Evidence from the euro area

Giuseppe Pulina

Economics Letters, 2024, vol. 236, issue C

Abstract: This paper documents the simultaneous accumulation of liquid assets and credit card debt in euro area countries. Despite its significantly lower prevalence compared to the US, results underscore similarities in the fundamental role of credit constraints and preferences toward risk. Contrary to previous findings with US data, tertiary education does not appear to significantly mitigate this puzzling behavior in the euro area.

Keywords: Household finance; Credit card puzzle; Credit constraints; Risk aversion; Precautionary motive (search for similar items in EconPapers)
JEL-codes: D14 D91 E21 G02 (search for similar items in EconPapers)
Date: 2024
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0165176524000697
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:ecolet:v:236:y:2024:i:c:s0165176524000697

DOI: 10.1016/j.econlet.2024.111586

Access Statistics for this article

Economics Letters is currently edited by Economics Letters Editorial Office

More articles in Economics Letters from Elsevier
Bibliographic data for series maintained by Catherine Liu ().