Household repayment behavior: The role of social capital and institutional, political, and religious beliefs

Georgarakos, D. and Fürth, S. (2015) Household repayment behavior: The role of social capital and institutional, political, and religious beliefs. European Journal of Political Economy, 37, pp. 249-265. (doi: 10.1016/j.ejpoleco.2014.10.001)

Full text not currently available from Enlighten.

Abstract

We examine the influence of social capital and various prevailing beliefs on household repayment behavior in Europe, after accounting for household-specific characteristics and country differences in institutions. Arrears are more common among households living in regions with dense corruption beliefs, low confidence in institutions and authorities, and a low fraction of religious people. Moreover, high stocks of social capital reduce the likelihood of arrears, net of the influence of various potentially relevant factors. Households in these communities face a higher hazard of losing standing in the group and access to the positive externalities of social capital.

Item Type:Articles
Status:Published
Refereed:Yes
Glasgow Author(s) Enlighten ID:Georgarakos, Professor Dimitris
Authors: Georgarakos, D., and Fürth, S.
College/School:College of Social Sciences > Adam Smith Business School > Economics
Journal Name:European Journal of Political Economy
Publisher:Elsevier
ISSN:0176-2680
Published Online:23 October 2014

University Staff: Request a correction | Enlighten Editors: Update this record