Debt repayment problems have ‘severe consequences’ on consumption, paper finds

bank-of-estonia
Central Bank of Estonia: paper analyses impact of debt repayment problems on consumption

Debt repayment issues lead to "substantial" short-term changes in consumption, a working paper published by the Central Bank of Estonia suggests.

In Debt repayment problems: what are the implications for consumption? Merike Kukk investigates the impact of debt repayment problems on consumption in Estonia from 2004–2011.

On average, quarterly consumption measured 30% lower when an individual had debt repayment problems; the longer the problem lasts, the more "severe" the decline in consumption was

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact [email protected] or view our subscription options here: http://subscriptions.centralbanking.com/subscribe

You are currently unable to copy this content. Please contact [email protected] to find out more.

To continue reading...

You need to sign in to use this feature. If you don’t have a Central Banking account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here: