Patterns and evolution of consumer debt: evidence from latent transition models
Quality & Quantity: International Journal of Methodology, 2019, vol. 53, issue 1, No 20, 389-415
Abstract This paper empirically investigates patterns in the use of credit and their temporal evolution against socio-economic and behavioural traits of borrowers. Debt holder segments were identified from data contained in three waves (2011, 2013 and 2015) of the biennial panel study of Polish households—Social Diagnosis. Analysis supported claims for a differential role of socio-economic characteristics and behavioural factors in evolution of segments of credit users. The analysis conducted with latent transition modelling confirmed intertemporal stability of borrowing patterns. At the same time, it was revealed that: (1) some groups of borrowers—mortgage holders in particular—were likely to stay in their respective groups, while others—especially those borrowing from outside the banking sector and those indebted for other purposes—were more likely to transition; (2) mortgages and loans for household run business were strongly linked to household socio-economic characteristics; (3) loans for durables, renovation and, most notably, consumption were less driven by age of the household head, whereas the ability to manage income was clearly pertinent for transition to those groups; (4) the group of overindebted consumers, although not particularly large, was characterized by high probability of remaining indebted with very low chances of escaping debt.
Keywords: Consumer debt; Segmentation; Latent transition models; Socio-economic influences; Behavioural traits (search for similar items in EconPapers)
JEL-codes: C33 C38 D14 G02 (search for similar items in EconPapers)
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2) Track citations by RSS feed
Downloads: (external link)
http://link.springer.com/10.1007/s11135-018-0759-9 Abstract (text/html)
Access to the full text of the articles in this series is restricted.
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:spr:qualqt:v:53:y:2019:i:1:d:10.1007_s11135-018-0759-9
Ordering information: This journal article can be ordered from
Access Statistics for this article
Quality & Quantity: International Journal of Methodology is currently edited by Vittorio Capecchi
More articles in Quality & Quantity: International Journal of Methodology from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().