Which Loans do We Take? A Micro-Level Analysis of Croatian Households’ Debt Participation

Mate Rosan () and Krunoslav Zauder
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Mate Rosan: Croatian National Bank

No 61, Working Papers from The Croatian National Bank, Croatia

Abstract: This paper uses a new data set in order to explore micro-level patterns of household borrowing in Croatia. By analyzing cross-section data from the Household Finance and Consumption Survey, conducted for the first time in Croatia in 2017, we present the structure of household debt holdings and identify several household characteristics associated with debt participation in three types of debt: secured debt, non-collateralized loans as well as overdrafts and/or credit card debt. Our results indicate that: a) households with middle aged heads tend to participate more and hold larger amounts of all three debt types, b) households with perceived credit constraints are more likely to take non-collateralized loans, and c) inability to finance consumption and willingness to take risks when making saving and investment decisions contribute to participation in overdrafts and/or credit card debt.

Keywords: household debt; secured vs. unsecured debt; age profiles of borrowing; credit constraints; Household Finance and Consumption Survey (search for similar items in EconPapers)
JEL-codes: D15 G21 G51 (search for similar items in EconPapers)
Pages: 40 pages
Date: 2020-10
New Economics Papers: this item is included in nep-cwa and nep-tra
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http://www.hnb.hr/repec/hnb/wpaper/pdf/w-061.pdf (application/pdf)

Related works:
Journal Article: Which Loans Do We Take? A Micro-Level Analysis of Croatian Households' Debt Participation (2022)
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Persistent link: https://EconPapers.repec.org/RePEc:hnb:wpaper:61

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