Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/212063 
Year of Publication: 
2007
Series/Report no.: 
Bank of Finland Research Discussion Papers No. 5/2007
Publisher: 
Bank of Finland, Helsinki
Abstract: 
This discussion paper presents a microsimulation model of household distress. We use logit analysis to estimate the extent to which a household's risk of being financially distressed depends on net income after tax and loan servicing costs. The impact of assumed macroeconomic shocks on this net income concept is calculated at the household level. The microsimulation model is used to simulate both the number of distressed households and their aggregate debt in various macroeconomic scenarios. The simulations indicate that household credit risks to banks are relatively well contained.
Subjects: 
financial stability
indebtedness
micro simulations
households
JEL: 
D14
G21
E47
R29
Persistent Identifier of the first edition: 
ISBN: 
978-952-462-355-1
Document Type: 
Working Paper

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