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The effect of marital status, income, age and other variables on insolvency in the U.S.A.
Author(s) -
DEVANEY SHARON A.,
HANNA SHERMAN
Publication year - 1994
Publication title -
journal of consumer studies and home economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.775
H-Index - 71
eISSN - 1470-6431
pISSN - 0309-3891
DOI - 10.1111/j.1470-6431.1994.tb00701.x
Subject(s) - insolvency , marital status , demographic economics , sample (material) , economics , panel data , demography , finance , sociology , population , econometrics , chemistry , chromatography
The prodiction of insolvency among U.S. households was the focus of this study with the use of data drawn from the Surveys of Consumer Finance 1.2 which were sponsored by the Federal Reserve Board of Governors. Analysis of panel data for a random sample of 1,934 households showed that age of the household head had a negative relationship with insolvency while income had a strong, negative effect. In the first period (1983), married couples had lower predicted insolvency rates than other household types. In the second period (1984), the relationship between marital status and insolvency was not as clear, but married couples with children had substantially lower predicted insolvency than did single‐parent households.