Exploring differences in household debt across the United States and euro area countries

Christelis, D. , Ehrmann, M. and Georgarakos, D. (2021) Exploring differences in household debt across the United States and euro area countries. Journal of Money, Credit and Banking, 53(2-3), pp. 477-501. (doi: 10.1111/jmcb.12769)

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Abstract

Household debt has played a central role in the global financial crisis, yet our understanding of it remains limited. We put U.S. household leverage in an international perspective, using household‐level data for the United States and 10 euro area economies. U.S. households have the highest prevalence of mortgage and consumer debt, hold comparatively large amounts and face higher debt burdens despite having higher income. We find that the U.S. economic environment is associated with a higher propensity to hold debt, primarily because a given level of collateral is associated with higher prevalence and larger amounts of mortgage debt in the United States.

Item Type:Articles
Status:Published
Refereed:Yes
Glasgow Author(s) Enlighten ID:Christelis, Dr Dimitris
Authors: Christelis, D., Ehrmann, M., and Georgarakos, D.
College/School:College of Social Sciences > Adam Smith Business School > Economics
Journal Name:Journal of Money, Credit and Banking
Publisher:Wiley
ISSN:0022-2879
ISSN (Online):1538-4616
Published Online:13 February 2021
Copyright Holders:Copyright © 2021 The Ohio State University
First Published:First published in Journal of Money, Credit and Banking 53(2-3): 477-501
Publisher Policy:Reproduced in accordance with the publisher copyright policy

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