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Determinants of credit card delinquency and bankruptcy: Macroeconomic factors

2003; Springer Science+Business Media; Volume: 27; Issue: 1 Linguagem: Inglês

10.1007/bf02751591

1938-9744

Sumit Agarwal, Chunlin Liu,

Banking stability, regulation, efficiency

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 macroeconomic fluctuations across counties. Our results show that county unemployment rates significantly influence delinquency.