Households’ Debt and Financial Sustainability in South Africa
Journal Title: International Journal of Financial Markets - Year 2014, Vol 1, Issue 2
Abstract
The objective of this study was to analyse South African household sectors’ financial behaviour in respect of how households historically reacted to their aggregate debt position during the period 1990-2013. Following diagnostic assessment of stationarity and co integration properties of time series data, a saving reaction function was estimated to examine whether households’ financial behaviour was sustainable subject to the lifecycle model. A standard four-variable framework of the Vector Error Correction Model (VECM)was estimated using E-views. Inconformity to the lifecycle model, the results provide evidence that households indeed behaved in a financially sustainable manner during the period under review.
Authors and Affiliations
Elvis Munyaradzi Ganyaupfu
Keywords
Related Articles
- EP ID EP28703
- DOI -
- Views 320
- Downloads 8
The Effect of Capital Market on Economic Growth in Nigeria (2000-2012)
This study was aimed at determining the relationship among gross domestic product, market capitalization and all share indexes; and evaluating the effects of the capital market on economic growth in Nigeria. The period...
Credit Risk Management and Its Impact on Financial Performance of Listed Banks in Ghana
The study empirically examines the impact of credit risk on performance of banks in Ghana. In the study parameters covered were; default rate, cost per loan assets and capital adequacy ratio. We used 9 banks listed on...
Households’ Debt and Financial Sustainability in South Africa
The objective of this study was to analyse South African household sectors’ financial behaviour in respect of how households historically reacted to their aggregate debt position during the period 1990-2013. Following...
Appraising the Money Market in the Economic Development of Nigeria: Challenges and Prospects
The growing importance of the money market in the Nigerian economy since the last decade has helped to stimulate interest among a wide variety of people in the study and practice of money market structure. This growing...
Basel III and Prudent Risk Management in Banking
This paper analyzes whether or not Basel III can sanitize the banking industry and enhance prudent risk management tendencies. The paper analyzes the framework and juxtaposes the drawbacks against the potential benefit...