Households’ Debt and Financial Sustainability in South Africa

Elvis Munyaradzi Ganyaupfu

International Journal of Financial Markets, 2015, vol. 1, issue 2, 70-76

Abstract: The objective of this study was to analyse South African household sectors’ financial behaviour in respect of how households historically reacted to their aggregate debt position during the period 1990-2013. Following diagnostic assessment of stationarity and co integration properties of time series data, a saving reaction function was estimated to examine whether households’ financial behaviour was sustainable subject to the lifecycle model. A standard four-variable framework of the Vector Error Correction Model (VECM)was estimated using E-views. Inconformity to the lifecycle model, the results provide evidence that households indeed behaved in a financially sustainable manner during the period under review.

Keywords: household debt; household financial behaviour; financial sustainability; disposable income (search for similar items in EconPapers)
Date: 2015
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Persistent link: https://EconPapers.repec.org/RePEc:rss:jnljfm:v1i2p3

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