University Library
  • Login
A gateway to Melbourne's research publications
Minerva Access is the University's Institutional Repository. It aims to collect, preserve, and showcase the intellectual output of staff and students of the University of Melbourne for a global audience.
View Item 
  • Minerva Access
  • Business & Economics
  • Melbourne Institute of Applied Economic and Social Research
  • Melbourne Institute of Applied Economic and Social Research - Research Publications
  • View Item
  • Minerva Access
  • Business & Economics
  • Melbourne Institute of Applied Economic and Social Research
  • Melbourne Institute of Applied Economic and Social Research - Research Publications
  • View Item
JavaScript is disabled for your browser. Some features of this site may not work without it.

    Financial Stress and Household Consumption: Exploring households’ commitment to contractual payments

    Thumbnail
    Download
    Published version (706.8Kb)

    Citations
    Altmetric
    Author
    Settle, A
    Date
    2020-11-01
    Publisher
    Melbourne Institute of Applied Economic and Social Research
    University of Melbourne Author/s
    Settle, Antonia
    Affiliation
    Melbourne Institute of Applied Economic and Social Research
    Metadata
    Show full item record
    Document Type
    Report
    Citations
    Settle, A. (2020). Financial Stress and Household Consumption: Exploring households’ commitment to contractual payments. Melbourne Institute of Applied Economic and Social Research.
    Access Status
    Open Access
    URI
    http://hdl.handle.net/11343/258926
    Open Access URL
    https://melbourneinstitute.unimelb.edu.au/__data/assets/pdf_file/0004/3547030/wp2020n25.pdf
    Abstract
    In a context of increasing attention to growing fixed payments, slim buffers, and unstable incomes in the household sector, this analysis considers the degree to which households prioritise contractual payments. The study uses Australian household expenditure data to examine which expenditure categories are prioritised when households enter into financial stress. The analysis finds that financially stressed households maintain basic expenditure and contractual payments by reducing expenditure on insurance along with more conventional discretionary spending. These findings suggest that insurance is effectively considered a luxury good. The findings thus point towards a sharp rise in risk exposure that accompanies the early stages of financial stress as households absorb shocks in order to maintain the stability of contractual payments. The findings have important implications for how we understand household sensitivity to shocks and the behaviour of households with regards to risk management, as well as the capacity of private insurance markets to stabilise the household sector. The findings also feed directly into broader questions about how the distribution of risk is evolving as household balance sheets expand.

    Export Reference in RIS Format     

    Endnote

    • Click on "Export Reference in RIS Format" and choose "open with... Endnote".

    Refworks

    • Click on "Export Reference in RIS Format". Login to Refworks, go to References => Import References


    Collections
    • Minerva Elements Records [52609]
    • Melbourne Institute of Applied Economic and Social Research - Research Publications [489]
    Minerva AccessDepositing Your Work (for University of Melbourne Staff and Students)NewsFAQs

    BrowseCommunities & CollectionsBy Issue DateAuthorsTitlesSubjectsThis CollectionBy Issue DateAuthorsTitlesSubjects
    My AccountLoginRegister
    StatisticsMost Popular ItemsStatistics by CountryMost Popular Authors