IMF Working Papers

A Generalized Framework for the Assessment of Household Financial Vulnerability

By Mindaugas Leika, Daniela Marchettini

November 7, 2017

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Mindaugas Leika, and Daniela Marchettini. A Generalized Framework for the Assessment of Household Financial Vulnerability, (USA: International Monetary Fund, 2017) accessed November 23, 2024

Disclaimer: IMF Working Papers describe research in progress by the author(s) and are published to elicit comments and to encourage debate. The views expressed in IMF Working Papers are those of the author(s) and do not necessarily represent the views of the IMF, its Executive Board, or IMF management.

Summary

Household financial fragility has received considerable attention following the global financial crisis, but substantial gaps remain in the analytical underpinnings of household financial vulnerability assessment, as well as in data availability. This paper aims at integrating the contributions in the literature in a coherent fashion. The study proposes also analytical and estimation extensions aimed at improving the quality of estimates and allowing the assessment of household financial vulnerability in presence of data limitations. The result of this effort is a comprehensive framework, that has wide applicability to both advanced and developing economies. For illustrative purposes the paper includes a detailed application to one developing country (Namibia).

Subject: Debt burden, Disposable income, External debt, Financial institutions, Financial sector policy and analysis, Financial sector risk, Mortgages, National accounts, Personal income

Keywords: Africa, Composite index, Credit risk, Debt burden, Debt level, Debt obligation, Debt payment, Debt repayment side, Debt service, Disposable income, Financial sector risk, Global, Gross income, Household, Household debt, Household DTI ratio, Interest rate, Microdata, Mortgages, Non-parametric methods, Payments DPh, Personal income, Sensitivity analysis, Stress test, WP

Publication Details

  • Pages:

    56

  • Volume:

    ---

  • DOI:

    ---

  • Issue:

    ---

  • Series:

    Working Paper No. 2017/228

  • Stock No:

    WPIEA2017228

  • ISBN:

    9781484322352

  • ISSN:

    1018-5941

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