Household repayment behavior: The role of social capital and institutional, political, and religious beliefs

Dimitris Georgarakos and Sven Fürth

European Journal of Political Economy, 2015, vol. 37, issue C, 249-265

Abstract: We examine the influence of social capital and various prevailing beliefs on household repayment behavior in Europe, after accounting for household-specific characteristics and country differences in institutions. Arrears are more common among households living in regions with dense corruption beliefs, low confidence in institutions and authorities, and a low fraction of religious people. Moreover, high stocks of social capital reduce the likelihood of arrears, net of the influence of various potentially relevant factors. Households in these communities face a higher hazard of losing standing in the group and access to the positive externalities of social capital.

Keywords: Household arrears; Social capital; Trust; Corruption; Beliefs (search for similar items in EconPapers)
JEL-codes: D12 G2 K42 (search for similar items in EconPapers)
Date: 2015
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Citations: View citations in EconPapers (15)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:poleco:v:37:y:2015:i:c:p:249-265

DOI: 10.1016/j.ejpoleco.2014.10.001

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