Publication type
Research Paper
Series Number
266
Series
Bank of England Working Paper Series
Authors
Publication date
June 1, 2005
Abstract:
Household indebtedness has grown sharply in the United Kingdom in recent years. This paper proposes a framework for understanding this based on a model in which households are assumed to plan their lifetime spending rationally, allowing for bequests to future generations. The model is set up to be consistent with both aggregate and disaggregated balance sheet positions as revealed in the British Household Panel Survey. The paper goes on to outline the effect on debt and balance sheets of changes in interest rates, house prices, preferences and retirement income.
Subject
Link
- http://www.bankofengland.co.uk/publications/workingpapers/index.htm
Notes
working paper
#507987