The Determinants of Household Debt Holding: An Empirical Analysis
As already pointed out in Chapter 2, the theoretical economic framework for indebtedness decisions is developed within inter-temporal consumption choice models which are based on the economic rationality of individuals, who seek to increase their living standards and maximise their expected utility by smoothing consumption over different periods of their lives through saving and borrowing decisions.
KeywordsRisk Tolerance Consumer Credit Hyperbolic Discount Debt Market Secured Debt
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