Household financial vulnerability in Indonesia: Measurement and determinants
Sri Noerhidajati1, Agung Bayu Purwoko1, Hesti Werdaningtyas1
1Bank Indonesia, Indonesia.
Abstract:
This study assesses the level of financial vulnerability of Indonesian households using data from the Household's Balance Sheet Survey (Survei Neraca Rumah Tangga/SNRT) 2016 and 2017. The SNRT are micro-unit of household data that contains information on preferences and behavior. Through both objective and subjective measurements of the Household Financial Vulnerability Index (FVI), we find that the financial vulnerability of Indonesian households is not only strongly influenced by income factors, but also by finance-related behavioral characteristics and several socio-economic factors. As a consistency and robustness check, we also estimate econometric models using the Indonesian Family Life Survey (IFLS) panel data for the periods 1993, 1997, 2000, 2007 and 2014. Our study then conclude that the level of household financial vulnerability decreased in 2017. Moreover, the study suggests that we should carefully monitor the behaviour of middle income group as they contribute significantly to the household financial vulnerability in Indonesia.
More Related Videos
06:00Author Spotlight: Development of a Smartphone-Enhanced Paper-Based Device for Rapid Dengue NS1 Detection
Published on: January 26, 2024
03:35Determining Gender-Based Differences in Retinal and Choroidal Thickness in Underweight Individuals via Swept-Source Optical Coherence Tomography
Published on: December 1, 2023
Related Concept Videos
What is Climate?
Factors Affecting Illness
For instance, risk factors are connected to illness,...
Relative Risk
Attachment Styles
The Anchoring-and-Adjustment Heuristic
Outliers and Influential Points
