Credit purpose and the interest rate – Evidence from the European Household Finance and Consumption Survey
Ładowanie...
Data
2022
Inny tytuł
Typ
Artykuł recenzyjny
Redaktor
dc.contributor.advisor
Dyscyplina PBN
Ekonomia i finanse
Czasopismo lub seria
International Journal of Finance & Economics
ISSN
1076-9307
1099-1158
1099-1158
ISBN
DOI
10.1002/ijfe.2680
Strona internetowa
Wydawca
Wydawca
Wydanie
Numer
Strony od-do
Tytuł monografii
item.page.defence
Tytuł tomu
Opis
Rodzaj licencji
Abstrakt (en)
The article presents empirical evidence for a significant role of stated creditpurpose for the level of interest rates paid by the end users of non-mortgagecredit (households). Data for the analysis was drawn from two waves of theHousehold Finance and Consumption Survey. The results of median regres-sion show that, with the exception of credit for consolidation of other debts,remaining credit purposes were associated with lower interest rates comparedto the interest rates of credit for car purchases. Especially low interest rateswere evidenced for educational debt. Quantile regression analysis has shownthat households which, given their socioeconomic background, experiencedthe highest interest rate costs, paid additional premiums if their debt wasrelated to consolidation of previous debts or consumption. In the case ofhouseholds paying relatively low premiums, consolidation of other debts andconsumption motives were associated with lower interest rates than loansdevoted to car purchase.