Racial/Ethnic Discrepancies in Household Overspending

Proceedings of the Academy of Financial Services, 2008

15 Pages Posted: 10 Dec 2016

See all articles by Hua Zan

Hua Zan

University of Hawaii at Manoa

Sherman D. Hanna

Ohio State University (OSU)

Date Written: October 8, 2008

Abstract

An analysis of 6,113 households with four quarters of expenditure data in the 2004-2005 U.S. Consumer Expenditure Interview Survey found that 43% of households had outlays more than aftertax income, and 25% of households had outlays that were 127% or more of aftertax income. Black and non-Hispanic White households had the same proportion overspending, 42%, while 49% of Hispanic households overspent. Based on a logistic regression of overspending, controlling for income and other variables, Black households were less likely than non-Hispanic White households to overspend.

Keywords: Saving, Consumption, Overspending, Consumer Expenditure Survey, Racial/Ethnic Differences

JEL Classification: D14

Suggested Citation

Zan, Hua and Hanna, Sherman D., Racial/Ethnic Discrepancies in Household Overspending (October 8, 2008). Proceedings of the Academy of Financial Services, 2008. Available at SSRN: https://ssrn.com/abstract=2882816

Hua Zan

University of Hawaii at Manoa ( email )

2500 Campus Road
Honolulu, HI NA 96822
United States

Sherman D. Hanna (Contact Author)

Ohio State University (OSU) ( email )

1787 Neil Avenue
Campbell 265D
Columbus, OH 43210
United States
614-292-4584 (Phone)

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