What Determines Consumer Financial Distress? Place- and Person-Based Factors

• 成果类型: Article
• 署名作者: Keys, Benjamin J.; Mahoney, Neale; Yang, Hanbin
• 署名单位: University of Pennsylvania; National Bureau of Economic Research; Stanford University; Harvard University
• 刊物名称: REVIEW OF FINANCIAL STUDIES
• ISSN/ISSBN: 0893-9454
• DOI: 10.1093/rfs/hhac025
• 发表日期: 2022
• 页码: 42
• 关键词: bankruptcy; neighborhoods; impacts

摘要

We use credit report data to study consumer financial distress in America. We report large, persistent disparities in financial distress across regions. To understand these patterns, we conduct a movers analysis. For collections and default, there is only weak convergence following a move, suggesting these types of distress are not primarily caused by place-based factors (e.g., local economic conditions and state laws) but instead reflect person-based characteristics (e.g., financial literacy and risk preferences). In contrast, for personal bankruptcy, we find a sizable place-based effect, which is consistent with anecdotal evidence on how local legal factors influence personal bankruptcy.