Economics at your fingertips  

Household loan loss risk in Finland: estimations and simulations with micro data

Risto Herrala () and Karlo Kauko

No 5/2007, Research Discussion Papers from Bank of Finland

Abstract: This discussion paper presents a microsimulation model of household distress. We use logit analysis to estimate the extent to which a household's risk of being financially distressed depends on net income after tax and loan servicing costs. The impact of assumed macroeconomic shocks on this net income concept is calculated at the household level. The microsimulation model is used to simulate both the number of distressed households and their aggregate debt in various macroeconomic scenarios. The simulations indicate that household credit risks to banks are relatively well contained. JEL classification numbers: D14, G21, E47, R29 Key words: financial stability, indebtedness, micro simulations, households

JEL-codes: D14 G21 E47 R29 (search for similar items in EconPapers)
Date: 2007-02-05
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (28) Track citations by RSS feed

Downloads: (external link) (application/pdf)

Related works:
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:

Access Statistics for this paper

More papers in Research Discussion Papers from Bank of Finland Bank of Finland, P.O. Box 160, FI-00101 Helsinki, Finland. Contact information at EDIRC.
Bibliographic data for series maintained by Minna Nyman ().

Page updated 2020-11-27
Handle: RePEc:bof:bofrdp:2007_005