An Australian Household's Choice: Housing Deprivation or Financial Debt ‘Betwixt the Devil and the Deep Blue Sea’?

14 Pages Posted: 12 Mar 2017 Last revised: 4 Oct 2017

See all articles by Ashton de Silva

Ashton de Silva

RMIT University - School of Economics, Finance and Marketing

Date Written: March 9, 2017

Abstract

Delivering reform that is Pareto Optimal is a challenging task. This is especially true for the Finance and Housing sectors. Compounding this challenge is the need to enhance quality of life opportunities of low income and welfare dependent households. The following discussion demonstrates a current and major challenge faced by authorities – a challenge that has all the hallmarks of being a ‘wicked problem’. A critical part of this discussion is that it identifies an imminent potential unintended consequence that could significantly affect the wellbeing of households – particularly those on low incomes. Namely, without viable alternatives – which currently do not exist, regulatory reforms further restricting the access to particular forms of alternative financial services could result in an increase in housing deprivation experienced by households typically regarded as poor – deprivation they may be willing to trade-out of for increased financial debt.

Keywords: Housing Deprivation; Financial Debt; Alternative Financial Services; Housing Essentials

JEL Classification: G18; G28; G38; D14

Suggested Citation

de Silva, Ashton, An Australian Household's Choice: Housing Deprivation or Financial Debt ‘Betwixt the Devil and the Deep Blue Sea’? (March 9, 2017). Available at SSRN: https://ssrn.com/abstract=2930643 or http://dx.doi.org/10.2139/ssrn.2930643

Ashton De Silva (Contact Author)

RMIT University - School of Economics, Finance and Marketing ( email )

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HOME PAGE: http://www.rmit.edu.au/contact/staff-contacts/academic-staff/d/de-silva-dr-ashton

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