Abstract
This paper analyzes why the household debt held by seniors in Korea is highly vulnerable, compared to the US and major European countries. Based on household-level micro data, seniors in Korea have lower income, lower income stability, and fewer financial assets than those in the US and European countries. In addition, the macro-financial environment over the last decade in Korea promoted debt accumulation. Hence, if Korean economy is hit by adverse macro-financial shocks, such as a sudden increase in interest rate or a decline in house prices, seniors in Korea are expected to be impacted most seriously.
| Original language | English |
|---|---|
| Pages (from-to) | 2080-2093 |
| Number of pages | 14 |
| Journal | Economics Bulletin |
| Volume | 36 |
| Issue number | 4 |
| Publication status | Published - 2016 Jan 1 |
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All Science Journal Classification (ASJC) codes
- Economics, Econometrics and Finance(all)
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Why household debt held by Korean seniors is problematic : An international comparison. / Kim, Jiseob.
In: Economics Bulletin, Vol. 36, No. 4, 01.01.2016, p. 2080-2093.Research output: Contribution to journal › Article
TY - JOUR
T1 - Why household debt held by Korean seniors is problematic
T2 - An international comparison
AU - Kim, Jiseob
PY - 2016/1/1
Y1 - 2016/1/1
N2 - This paper analyzes why the household debt held by seniors in Korea is highly vulnerable, compared to the US and major European countries. Based on household-level micro data, seniors in Korea have lower income, lower income stability, and fewer financial assets than those in the US and European countries. In addition, the macro-financial environment over the last decade in Korea promoted debt accumulation. Hence, if Korean economy is hit by adverse macro-financial shocks, such as a sudden increase in interest rate or a decline in house prices, seniors in Korea are expected to be impacted most seriously.
AB - This paper analyzes why the household debt held by seniors in Korea is highly vulnerable, compared to the US and major European countries. Based on household-level micro data, seniors in Korea have lower income, lower income stability, and fewer financial assets than those in the US and European countries. In addition, the macro-financial environment over the last decade in Korea promoted debt accumulation. Hence, if Korean economy is hit by adverse macro-financial shocks, such as a sudden increase in interest rate or a decline in house prices, seniors in Korea are expected to be impacted most seriously.
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UR - http://www.scopus.com/inward/citedby.url?scp=85007448673&partnerID=8YFLogxK
M3 - Article
AN - SCOPUS:85007448673
VL - 36
SP - 2080
EP - 2093
JO - Economics Bulletin
JF - Economics Bulletin
SN - 1545-2921
IS - 4
ER -