Debt Service of Low-Income Households in Indonesia
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Published:
Jun 19, 2015
Keywords:
debt service, logistic regression, charity, low-income household
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Abstract
External source of fund is one way to get funds, but when it reaches 50 percent and above of disposable income, it becomes an issue. This paper attempts to elaborate determinants influencing low-income household in having 50 percent or more debt service ratio. By utilizing logistic regression approach to extract the data collected in the Greater Jakarta Indonesia, this study finds that when household head’s age is 45 years old and above, having 5 dependents or more, and is a home owner, the household is the most likely to have 50 percent and above debt service. While the least likely is when household head originally from Jakarta, no worry about future domestic economy condition, and have more than USD80 income per month. Variances of education level, marital status, occupation, financing institution, charity per income are not proved statistically significantly give effect to the variance of debt service in this study
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References
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Keese, M. 2012. Who feels constrained by high debt burdens? Subjective vs. Objective measures of household debt. Journal of Economic Psychology 33 (2012), 125-141.
M. Omar, M. 2011. Economic Consumption Model Revisited: Infak Model Based on Al-Shaybani’s Level of Kasb. International Journal of Economic, Management and Accounting, Volume (19), 2011. Supplementary Issues, pp. 115-132.
Mann D, C Narayanan, J Caparusso, P Chandra. 2013. Asia Leverage Uncovered. Standard Chartered Global Research: Strategic Collaborative Original Universal Thematic (SCOUT).
Mazlan N. 2014. An Investigation on Household Debt in Malaysia. http://www.inceif.org/research-bulletin/investigation-household-debt-malaysia/. INCEIF. Retrieved on August 19, 2014.
Meniago, C, J Mukuddem-Petersen, MA Petersen, IP Mongale. 2013. What Causes household debt to increase in South Africa?. Economic Modelling 22 (2013), page 482-492.
OECD. 2013. Household Debt. OECD Factbook 2013: Economic, Environmental and Social Statistics. OECD Publishing.
Oliveira, ACM, C Eckel, RTA Croson. 2012. The Stability of Social Preferences in a Low-Income Neighborhood. Southern Economic Journal 2012, 79 (1), page 15-45.
Omar, MM. 2011. Economic Consumption Model Revisited: Infaq Model Based on Al-Shaybani’s Level of Al-Kasb. International Journal of Economics, Management and Accounting, Volume 19, 2011, Supplementary Issues, page 115-132.
Plagnol, A. C. 2011. Financial satisfaction over the life course: the influence of assets and liabilities. Journal of Economic Psychology Vo. 32, No. 1, pp 45-64
Pressman, S, RH Scott III. 2009. Who are the Debt Poor?. Journal of Economic Issues, Volume XLIII, Number 2, June 2009, page 423-432.
Sahi, SK. 2013. Demographic and socio-economic determinants of financial satisfaction. International Journal of Social Economics, Volume 40, Issue 2, page 127-150.
Santoso W, M Sukada. 2009. Risk Profile of Household and the Impact on Financial Stability. BIS Papers No.46, 2009, pg.58-74.
Wright, K. 2001. Generosity vs. Altruism: Philanthropy and Charity in the United States and United Kingdom. Voluntas: International Journal of Voluntary and Nonprofit Organizations, Volume 12, Number 4, December 2001, page 399-416.
Belsky ES, Retsinas NP. 2005. New Paths to Building Assets for the Poor. Building Assets Building Credit: Creating Wealth in Low-Income Communities, pg.1-9. Washington: Brookings Institution Press.
Brown, S, G Garino, K Taylor, SW Price. 2005. Debt and Financial Expectations: An Individual –and Household- Level Analysis. Economic Inquiry, Volume 43, Number 1, January 2005, page 100-120.
Cochran, W. G. 1977. Sampling Techniques (Third Eds). Canada: John Wiley and Sons Inc.
Gaberlavage G, S Hermanson. 2001. The Alternative Financial Services Industry. Washington: AARP Public Policy Institute.
Goode, J. 2012. Brothers are doing it for themselves?: Men’s experiences of getting into and getting out of debt. The Journal of Socio-Economics 41 (2012), page 327-335.
Lee, NR, M Miller. 2012. Influencing positive financial behaviors: the social marketing solution. Journal of Social Marketing. Volume 2, Issue 1, page 70-86.
Livingstone, S. M. and Lunt, P. K. 1992. Predicting personal debt and debt repayment: Psychological, social and economic determinants. Journal of Economic Psychology 13 (1992), 111-134.
Keese, M. 2012. Who feels constrained by high debt burdens? Subjective vs. Objective measures of household debt. Journal of Economic Psychology 33 (2012), 125-141.
M. Omar, M. 2011. Economic Consumption Model Revisited: Infak Model Based on Al-Shaybani’s Level of Kasb. International Journal of Economic, Management and Accounting, Volume (19), 2011. Supplementary Issues, pp. 115-132.
Mann D, C Narayanan, J Caparusso, P Chandra. 2013. Asia Leverage Uncovered. Standard Chartered Global Research: Strategic Collaborative Original Universal Thematic (SCOUT).
Mazlan N. 2014. An Investigation on Household Debt in Malaysia. http://www.inceif.org/research-bulletin/investigation-household-debt-malaysia/. INCEIF. Retrieved on August 19, 2014.
Meniago, C, J Mukuddem-Petersen, MA Petersen, IP Mongale. 2013. What Causes household debt to increase in South Africa?. Economic Modelling 22 (2013), page 482-492.
OECD. 2013. Household Debt. OECD Factbook 2013: Economic, Environmental and Social Statistics. OECD Publishing.
Oliveira, ACM, C Eckel, RTA Croson. 2012. The Stability of Social Preferences in a Low-Income Neighborhood. Southern Economic Journal 2012, 79 (1), page 15-45.
Omar, MM. 2011. Economic Consumption Model Revisited: Infaq Model Based on Al-Shaybani’s Level of Al-Kasb. International Journal of Economics, Management and Accounting, Volume 19, 2011, Supplementary Issues, page 115-132.
Plagnol, A. C. 2011. Financial satisfaction over the life course: the influence of assets and liabilities. Journal of Economic Psychology Vo. 32, No. 1, pp 45-64
Pressman, S, RH Scott III. 2009. Who are the Debt Poor?. Journal of Economic Issues, Volume XLIII, Number 2, June 2009, page 423-432.
Sahi, SK. 2013. Demographic and socio-economic determinants of financial satisfaction. International Journal of Social Economics, Volume 40, Issue 2, page 127-150.
Santoso W, M Sukada. 2009. Risk Profile of Household and the Impact on Financial Stability. BIS Papers No.46, 2009, pg.58-74.
Wright, K. 2001. Generosity vs. Altruism: Philanthropy and Charity in the United States and United Kingdom. Voluntas: International Journal of Voluntary and Nonprofit Organizations, Volume 12, Number 4, December 2001, page 399-416.