Determinants of Credit Card Delinquency and Bankruptcy: Macroeconomic Factors

Posted: 14 Apr 2005

See all articles by Sumit Agarwal

Sumit Agarwal

National University of Singapore

Chunlin Liu

University of Nevada, Reno - College of Business

Abstract

In this paper, we examine how county unemployment rates affect consumers' delinquency and bankruptcy behavior by focusing on the credit card market. In particular, after controlling for credit supply and shocks like divorce and health coverage we investigate whether consumer propensity for delinquency and bankruptcy changes with respect to the macro economic fluctuations across counties. Our results show that county unemployment rates significantly influence delinquency.

Keywords: Unemployment, Consumer Delinquency and Bankruptcy, and Credit Cards

JEL Classification: G21, G33, E24

Suggested Citation

Agarwal, Sumit and Liu, Chunlin, Determinants of Credit Card Delinquency and Bankruptcy: Macroeconomic Factors. Journal of Economics and Finance, Vol. 27, pp, 75-84, 2003. Available at SSRN: https://ssrn.com/abstract=691222

Sumit Agarwal (Contact Author)

National University of Singapore ( email )

15 Kent Ridge Drive
Singapore, 117592
Singapore
8118 9025 (Phone)

HOME PAGE: http://www.ushakrisna.com

Chunlin Liu

University of Nevada, Reno - College of Business ( email )

University of Nevada, Reno
Reno, NV 89557-0016
United States

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