Determinants of Credit Card Delinquency and Bankruptcy: Macroeconomic Factors
Posted: 14 Apr 2005
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
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