Abstract
Household financial access, in the form of savings, investments, credit, and others, can provide the means to smooth consumption and make on-time payments when large income drops occur. This study examined the model in which household financial access mediated the association between a large income drop and credit record in a national representative sample. Results indicate that household financial access was significantly associated with a large income drop after controlling for financial education, socialization, knowledge, and sociodemographic variables. Results suggest that household financial access may buffer the relationship. Practice and policy implications are included.
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Birkenmaier, J., Fu, Q. Does U.S. Household Financial Access Mediate the Relationship Between a Large Income Drop and Credit Record?. J Consum Policy 42, 267–283 (2019). https://doi.org/10.1007/s10603-019-9407-6
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DOI: https://doi.org/10.1007/s10603-019-9407-6