1. ENDEUDAMIENTO MAXIMO SOSTENIBLE DE LOS HOGARES EN CHILE.
- Author
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LEMUS, ANTONIO and PULGAR, CARLOS
- Subjects
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DEBT , *INCOME , *HOUSEHOLDS , *INTEREST rates , *ECONOMIC impact , *FINANCIAL crises - Abstract
Recent global trends show high levels of households' indebtedness in developed and emerging economies. This paper proposes a method applicable in those economies where a household financial survey and interest rate caps exist. The method applies to the country with the most indebted households in Latin America, Chile. The results state that: (i) the same debt threshold does not apply to all households as variables such as income affect it; (ii) the debt threshold increases with households' income level; (iii) the presence of mortgage debt increases the debt thresholds; (iv) Chilean households overindebted are more than a quarter. [ABSTRACT FROM AUTHOR]
- Published
- 2023