The Joneses’ income and debt market participation: Empirical evidence from bank account data

C-Tier
Journal: Economics Letters
Year: 2016
Volume: 142
Issue: C
Pages: 6-9

Authors (2)

Score contribution per author:

0.503 = (α=2.01 / 2 authors) × 0.5x C-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

In this paper we study whether the decision to raise debt is related to average income in the own residential area. Based on a unique dataset of bank account data we find that bank customers are more likely to hold collateralized and uncollateralized loans and to make use of the overdraft facility when the comparison income is higher, even after controlling for socio-demographic and financial characteristics. This indicates that conspicuous consumption is partly financed by debt.

Technical Details

RePEc Handle
repec:eee:ecolet:v:142:y:2016:i:c:p:6-9
Journal Field
General
Author Count
2
Added to Database
2026-01-24