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Determinants of household loans

Author

Listed:
  • Sorin Daniel MANOLE

    (“Constantin Brâncoveanu” University of Piteşti, Romania)

  • Corina PETRESCU

    (“Constantin Brâncoveanu” University of Piteşti, Romania)

  • Ramona Ioana VLADA

    (“Lucian Blaga” University of Sibiu, Romania)

Abstract

Although, with the onset of the global financial and economic crisis, there have been significant changes in the activity of banks in Romania, the level of household indebtedness has remained high until today. This is why this paper analyzes the influence of unemployment rate and Consumer Price Index on household loans in Romania. The analysis is based on monthly time series data during 2008-2015 of loans to households, unemployment rate and Consumer Price Index. To study this dependence, we have opted for a model with an ARMA component, where the influence of unemployment rate and Consumer Price Index manifests itself with a delay (lag) and is expressed by a linear relationship. The model shows that these factors have a significant influence on household loans.

Suggested Citation

  • Sorin Daniel MANOLE & Corina PETRESCU & Ramona Ioana VLADA, 2016. "Determinants of household loans," Theoretical and Applied Economics, Asociatia Generala a Economistilor din Romania / Editura Economica, vol. 0(4(609), W), pages 89-102, Winter.
    • Handle: RePEc:agr:journl:v:xxiii:y:2016:i:4(609):p:89-102
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    References listed on IDEAS

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    Cited by:

    1. Enache Calcedonia, 2022. "Macroeconomic Determinants of Household Indebtedness in Romania: An Econometric Approach," Journal of Social and Economic Statistics, Sciendo, vol. 11(1-2), pages 102-117, December.

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