An Empirical Analysis of Household Debt Behavior Determinants

Herispon
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Herispon: Doctoral student at Andalas University, Padang, & Lecturer at Sekolah Tinggi Ilmu Ekonomi Riau, Pekanbaru

Economics and Finance in Indonesia, 2019, vol. 65, 132-148

Abstract: This study identifies the determinants of debt behaviors and their effects on household consumption. We surveyed households in Riau, particularly in Pekanbaru and its neighboring areas, using purposive sampling and collected 390 useable responses. Our findings show that of the ten determinants considered, debt behavior can be explained by five determinants: (i) imitated lifestyle and consumerism, (ii) ability to manage money from debt, (iii) effects of promotion on the internet and visual media, (iv) monthly income, and (v) increasing household expenses and dependants. Implications of the findings are discussed.

Keywords: consumerism; income pressure; dissaving (search for similar items in EconPapers)
JEL-codes: D1 D31 E21 G01 (search for similar items in EconPapers)
Date: 2019
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Persistent link: https://EconPapers.repec.org/RePEc:lpe:efijnl:201909

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