The Impact of Economic Shocks on Financially Vulnerable Slovak Households: A Socio-Economic and Demographic Analysis

Erik Gogola ()
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Erik Gogola: University of Economics in Bratislava

No 14316324, Proceedings of Economics and Finance Conferences from International Institute of Social and Economic Sciences

Abstract: This study identifies financially vulnerable indebted Slovak households most at risk of defaulting on loan payments due to socio-economic and demographic factors. The recent economic shifts, including a surge in Slovakia's inflation rate peaking at 15.4% in February 2023, have exacerbated financial strain. Analysis of HFCS microdata shows increased household indebtedness, particularly mortgage debt, from 2011 to 2021. Households with negative financial margins, limited liquid assets, younger (16-34) and older (65+) age groups, single-person households, and those in the lowest income and wealth quintiles are most vulnerable. Logistic regression reveals that gross income is the most significant determinant of default probability, with higher income households being less likely to default. The study highlights the need for targeted policy measures to support these vulnerable groups and mitigate default risks.

Keywords: Slovak household indebtedness; socio-economic and demographic factors HFCS; household vulnerability; logistic regression (search for similar items in EconPapers)
JEL-codes: C21 D14 E43 (search for similar items in EconPapers)
Pages: 18 pages
New Economics Papers: this item is included in nep-tra
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Published in Proceedings of the Proceedings of the International Conference on Economics, Finance & Business, Vienna, Nov -0001, pages 19-36

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