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Over-indebtedness and age: The effects on individual health

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  • Blázquez, Maite
  • Budría, Santiago
  • Moro-Egido, Ana I.

Abstract

This paper uses longitudinal data from the Spanish Survey of Household Finances to investigate the relation between household situations of over-indebtedness and self-assessed health by age. The interest of the Spanish case relies on the increased indebtedness of Spanish families after the 2008 Global Crisis. The paper differentiates between mortgage and non-mortgage debts and between young and middle-aged and old individuals. We rely on Deb and Trivedi's (2006) method to account for the endogeneity of self-assessed health and over-indebtedness simultaneously. The paper shows that being over-indebted in mortgage debts is associated with lower self-assessed health among middle-aged and old individuals. However, among young individuals, this detrimental health effect only appears when the situation of over-indebtedness is due to both mortgage and non-mortgage debts.

Suggested Citation

  • Blázquez, Maite & Budría, Santiago & Moro-Egido, Ana I., 2020. "Over-indebtedness and age: The effects on individual health," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 87(C).
    • Handle: RePEc:eee:soceco:v:87:y:2020:i:c:s2214804319304823
    DOI: 10.1016/j.socec.2020.101575
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    More about this item

    Keywords

    Over-indebtedness; Self-assessed health; Spanish survey of household finances; Deb and Trivedi estimation technique;
    All these keywords.

    JEL classification:

    • C25 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Discrete Regression and Qualitative Choice Models; Discrete Regressors; Proportions; Probabilities
    • D14 - Microeconomics - - Household Behavior - - - Household Saving; Personal Finance
    • I31 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General Welfare, Well-Being

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