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Household debt and financial vulnerability: empirical evidence for Spain, 2002–2020

Author

Listed:
  • Juan Ignacio Martín-Legendre

    (University of A Coruna)

  • José Manuel Sánchez-Santos

    (University of A Coruna
    ECOBAS)

Abstract

The aim of this paper is to analyse the evolution of Spanish households’ indebtedness and financial vulnerability over the course of this century using micro-data from the Household Finance and Consumption Survey. Our results show a growing debt participation of Spanish households and an increase in the stock of outstanding debt of indebted households, a trend that reversed with the end of the Great Recession. Moreover, the percentage of financially vulnerable households according to three indicators grew dramatically until the end of the downward phase of the last economic cycle and showed considerable signs of improvement during the second half of 2010s. These results, nonetheless, call attention to the number of Spanish households being unable to service their debts in the face of an economic downturn.

Suggested Citation

  • Juan Ignacio Martín-Legendre & José Manuel Sánchez-Santos, 2024. "Household debt and financial vulnerability: empirical evidence for Spain, 2002–2020," Empirica, Springer;Austrian Institute for Economic Research;Austrian Economic Association, vol. 51(3), pages 703-730, August.
    • Handle: RePEc:kap:empiri:v:51:y:2024:i:3:d:10.1007_s10663-024-09617-z
    DOI: 10.1007/s10663-024-09617-z
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    References listed on IDEAS

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    More about this item

    Keywords

    Financial instability hypothesis; Financial vulnerability; Household debt; Inequality; Survey data;
    All these keywords.

    JEL classification:

    • D14 - Microeconomics - - Household Behavior - - - Household Saving; Personal Finance
    • E21 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Consumption; Saving; Wealth
    • G20 - Financial Economics - - Financial Institutions and Services - - - General

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