Statistical Modelization of Overindebtedness

Amandine Tran

Working papers from Banque de France

Abstract: The procedure for overindebtedness was born in the late 1980s, in a context of strong expansion of consumer credit. In 2010, better supervision of business practices by the public authorities helped to limit the scale of consumer credit. Overindebtedness now concerns financially fragile populations with low levels of debt. The main goal of this paper is to set up an explanatory model of overindebtedness. A first model highlights the significant impact of the standard of living on being overindebted. However, disparities remain between family structures. The main limitation of this first model is the fact that it relies essentially on aggregated data. Therefore, a second model, which is focused on the population of overindebted households only and uses a rich database, allows accounting for different factors playing a role in the orientation towards personal recovery, which is the orientation that is offered to the most financially vulnerable overindebted households.

Keywords: overindebtedness; standard of living; family structure; logit; Enqu te des Revenus Fiscaux et Sociaux; personal recovery (search for similar items in EconPapers)
JEL-codes: C15 C51 C52 (search for similar items in EconPapers)
Pages: 50 pages
Date: 2021
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Persistent link: https://EconPapers.repec.org/RePEc:bfr:banfra:807

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