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 |
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Pages (from-to) | 2080-2093 |
Number of pages | 14 |
Journal | Economics Bulletin |
Volume | 36 |
Issue number | 4 |
Publication status | Published - 2016 |
All Science Journal Classification (ASJC) codes
- Economics, Econometrics and Finance(all)