Gauging Households Debt Tolerance: Evidence from Thailand

Athiphat Muthitacharoen

Asian Journal of Applied Economics, vol. 23, issue 01

Abstract: Understanding households’ debt tolerance has direct implications on policies addressing highhousehold debt in many Asian economies. This study examines the determinants of debt tolerance and assesses the tolerance level among different household segments. It defines the debt tolerance as the ability to cope with debt without suffering from anxiety and provides empirical evidence based on a survey on Thai households in 2013. Using the IV probit model, the findings indicate that factors important to the debt tolerance include debt burden and financial cushion as well as income security, financial history, and financial discipline. Given this range of factors, a multi-faceted approach is required to address the debt tolerance issue. The study highlights the relatively low debt tolerance among households in precarious jobs including farmers, general workers and business owners. The results are robust to a number of alternative specifications

Keywords: Consumer/Household; Economics (search for similar items in EconPapers)
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://ageconsearch.umn.edu/record/338457/files/35.Vol23Issue1_p59-74.pdf (application/pdf)

Related works:
Journal Article: Gauging Households’ Debt Tolerance: Evidence from Thailand (2016)
Working Paper: Gauging Households' Debt Tolerance: Evidence from Thailand (2015)
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:ags:thkase:338457

DOI: 10.22004/ag.econ.338457

Access Statistics for this article

More articles in Asian Journal of Applied Economics from Kasetsart University, Center for Applied Economics Research Contact information at EDIRC.
Bibliographic data for series maintained by AgEcon Search ().