Macroeconomic Determinants of Household Debt in OECD Countries

This article investigates the macroeconomic determinants of household debt in developed economies using a sample comprising 26 OECD countries for period 2002q1–2020q4. By resorting to unconditional quantile regression, we find relevant asymmetries response debt. According our results, economic growth leads lower debt, but beneficial effect decreases as level increases. Inflation lowers borrowing only if is high. Higher house prices lead higher with impact becoming stronger higher. Investments go hand and investments levels borrowing, even when already Mortgage credit interest rates are positively linked starting levels. A rising unemployment rate link becomes weaker public expenditures generally associated In addition, that exhibits very powerful autoregressive behavior, being difficult reduce rapidly case need.