Excessive Private Sector Leverage and Its Drivers : Evidence from Advanced Economies

Author/Editor:

Mariusz Jarmuzek ; Rossen Rozenov

Publication Date:

March 28, 2017

Electronic Access:

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Disclaimer: IMF Working Papers describe research in progress by the author(s) and are published to elicit comments and to encourage debate. The views expressed in IMF Working Papers are those of the author(s) and do not necessarily represent the views of the IMF, its Executive Board, or IMF management.

Summary:

Nonfinancial private sector debt increased significantly in advanced economies prior to the global financial crisis and, with a few exceptions, deleveraging has been limited. Furthermore, in some countries households and corporations have continued to accumulate debt. Drawing on the literature, the paper aims to provide a quantitative assessment of the gaps between actual and sustainable levels of debt and to identify the key factors that drive excessive borrowing. Results suggest that variables that are typically found important in studies focusing on borrowing decisions, are also relevant for explaining the debt sustainability gaps.

Series:

Working Paper No. 17/72

Subject:

English

Publication Date:

March 28, 2017

ISBN/ISSN:

9781475589573/1018-5941

Stock No:

WPIEA2017072

Price:

$18.00 (Academic Rate:$18.00)

Format:

Paper

Pages:

30

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