Please use this identifier to cite or link to this item: https://hdl.handle.net/1959.11/10602
Title: The Determinants of Australian Household Debt: A Macro-level Study
Contributor(s): Meng, Xianming  (author)orcid ; Hoang, Nam  (author)orcid ; Siriwardana, Mahinda  (author)
Publication Date: 2011
Handle Link: https://hdl.handle.net/1959.11/10602
Abstract: Household debt in Australia has grown at an astonishing rate since the 1990s. This paper employs a cointegrated Vector Autoregression (VAR) model to explore the determinants of Australian household debt. The results show that GDP is the most important determinant, followed by the housing prices and the number of new dwellings. Meanwhile, interest rates, unemployment rate and inflation are found to have a negative effect on Australian household debt; of these, interest rates are the most significant. Based on these results, it is judicious to rein in household debt in the economic booms through reforms to the financial system, standardizing lending market, monitoring and intervening in assets market, and using the monetary policy timely, comprehensively, and carefully.
Publication Type: Working Paper
Fields of Research (FoR) 2008: 140212 Macroeconomics (incl Monetary and Fiscal Theory)
Socio-Economic Objective (SEO) 2008: 910108 Monetary Policy
910105 Fiscal Policy
HERDC Category Description: W Working Paper
Publisher/associated links: http://www.une.edu.au/about-une/academic-schools/une-business-school/research/occasional-paper-series/economics
http://www.une.edu.au/__data/assets/pdf_file/0007/14947/econwp11-4.pdf
Series Name: Business, Economics and Public Policy Working Papers
Series Number : 2011-4
Appears in Collections:Working Paper

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