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
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