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Indebtedness and Subjective Financial Wellbeing of Households in Indonesia

Author

Listed:
  • Dwini Handayani

    (Demographic Institute, Faculty of Economics and Business, Universitas Indonesia)

  • Ummu Salamah

    (Alumni of Faculty of Economics and Business, Universitas Indonesia)

  • Restananda Nabilla Yusacc

    (Faculty of Economics and Business, Universitas Indonesia)

Abstract

Indebtedness is an element to foresee household financial wellbeing. This vulnerability could be determined objectively and subjectively. Objective financial vulnerability is the objective ability to make ends meet that is analyzed using household income and characteristics. Measurement in subjective welbeing is determined by household perceptions in their ability to make ends meet. Household behavior with different perceptions will behave differently. Indebtedness is analyzed using the Indonesian Family Life Survey (IFLS) 5 with the Ordinary Least Square method. The inferential shows that both objective and subjective financial wellbeing influence household indebtedness.

Suggested Citation

  • Dwini Handayani & Ummu Salamah & Restananda Nabilla Yusacc, 2016. "Indebtedness and Subjective Financial Wellbeing of Households in Indonesia," Economics and Finance in Indonesia, Faculty of Economics and Business, University of Indonesia, vol. 62, pages 78-87, August.
    • Handle: RePEc:lpe:efijnl:201607
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    References listed on IDEAS

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    More about this item

    Keywords

    Household Behavior; Family Economics; Indebtedness; Subjective Wellbeing;
    All these keywords.

    JEL classification:

    • D10 - Microeconomics - - Household Behavior - - - General
    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution

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