{ "title": "A Generalized Framework for the Assessment of Household Financial Vulnerability", "publication": "IMF Working Papers, November 7, 2017", "sourceUrl": "https://www.imf.org/en/publications/wp/issues/2017/11/07/a-generalized-framework-for-the-assessment-of-household-financial-vulnerability-45297", "canonical": "https://www.imf.org/en/publications/wp/issues/2017/11/07/a-generalized-framework-for-the-assessment-of-household-financial-vulnerability-45297", "overlayPath": "/en/publications/wp/issues/2017/11/07/a-generalized-framework-for-the-assessment-of-household-financial-vulnerability-45297/index.md", "summary": "Household financial fragility has received considerable attention following the global financial crisis, but substantial gaps remain in the analytical underpinnings of household financial vulnerability assessment, as well as in data availability.", "sections": [ { "heading": "Summary", "content": "- Household financial fragility received considerable attention following the global financial crisis.\n- Substantial gaps remain in the analytical underpinnings of household financial vulnerability assessment and in data availability.\n- The paper integrates contributions in the literature into a coherent framework.\n- Analytical and estimation extensions are proposed to improve estimate quality and to allow assessment in the presence of data limitations.\n- The resulting comprehensive framework has wide applicability to both advanced and developing economies.\n- For illustrative purposes, the paper includes a detailed application to one developing country (Namibia)." }, { "heading": "Framework and Methodology", "content": "- Integrates literature on household financial vulnerability into a generalized, coherent framework.\n- Proposes analytical extensions aimed at improving quality of estimates.\n- Proposes estimation extensions allowing assessment when facing data limitations.\n- Methods include non-parametric methods, sensitivity analysis, and stress test approaches (keywords reflect methodological focus)." }, { "heading": "Application and Scope", "content": "- Detailed application provided for Namibia as an illustrative developing-country case.\n- Framework designed for applicability to both advanced and developing economies.\n- Subjects covered include: Debt burden, Disposable income, External debt, Financial institutions, Financial sector policy and analysis, Financial sector risk, Mortgages, National accounts, Personal income." }, { "heading": "Key Findings and Analytical Emphases", "content": "- Emphasizes assessment of household debt-related measures: debt burden, debt level, debt obligation, debt payment, debt repayment side, debt service.\n- Focus on household-level indicators: gross income, household debt, household DTI ratio, interest rate, payments DPh.\n- Highlights use of microdata where available and approaches to handle limited data.\n- Addresses credit risk and composite index construction for vulnerability measurement." }, { "heading": "Policy Implications and Use Cases", "content": "- Provides a comprehensive diagnostic tool for policymakers to assess household financial vulnerability.\n- Useful for financial sector risk monitoring and stress-testing at the household level.\n- Applicable to policymakers in both advanced and developing economies seeking to evaluate household-level exposures and resilience.\n\n---\n\n Content in this bundle\n\n- wp17228 — Operationalizing the Concept of Household Financial Vulnerability\n - wp17228 — Operationalizing the Concept of Household Financial Vulnerability (Markdown version){rel=\"alternate\" type=\"text/markdown\"}\n - wp17228 — Operationalizing the Concept of Household Financial Vulnerability (PDF){rel=\"external\" type=\"application/pdf\"}\n\n---\n\nSource: https://www.imf.org/en/publications/wp/issues/2017/11/07/a-generalized-framework-for-the-assessment-of-household-financial-vulnerability-45297" } ], "bullets": [ "[Markdown version](/en/publications/wp/issues/2017/11/07/a-generalized-framework-for-the-assessment-of-household-financial-vulnerability-45297/index.md)", "[Structured JSON version](/en/publications/wp/issues/2017/11/07/a-generalized-framework-for-the-assessment-of-household-financial-vulnerability-45297/index.json)", "[Bundle manifest](/en/publications/wp/issues/2017/11/07/a-generalized-framework-for-the-assessment-of-household-financial-vulnerability-45297/bundle-manifest.json)", "Authors: Mindaugas Leika, Daniela Marchettini", "Published: November 7, 2017", "Series: IMF Working Papers", "DOI: https://doi.org/10.5089/9781484322352.001", "Household financial fragility received considerable attention following the global financial crisis.", "Substantial gaps remain in the analytical underpinnings of household financial vulnerability assessment and in data availability.", "The paper integrates contributions in the literature into a coherent framework.", "Analytical and estimation extensions are proposed to improve estimate quality and to allow assessment in the presence of data limitations.", "The resulting comprehensive framework has wide applicability to both advanced and developing economies.", "For illustrative purposes, the paper includes a detailed application to one developing country (Namibia).", "Integrates literature on household financial vulnerability into a generalized, coherent framework.", "Proposes analytical extensions aimed at improving quality of estimates.", "Proposes estimation extensions allowing assessment when facing data limitations.", "Methods include non-parametric methods, sensitivity analysis, and stress test approaches (keywords reflect methodological focus).", "Detailed application provided for Namibia as an illustrative developing-country case.", "Framework designed for applicability to both advanced and developing economies.", "Subjects covered include: Debt burden, Disposable income, External debt, Financial institutions, Financial sector policy and analysis, Financial sector risk, Mortgages, National accounts, Personal income.", "Emphasizes assessment of household debt-related measures: debt burden, debt level, debt obligation, debt payment, debt repayment side, debt service.", "Focus on household-level indicators: gross income, household debt, household DTI ratio, interest rate, payments DPh.", "Highlights use of microdata where available and approaches to handle limited data.", "Addresses credit risk and composite index construction for vulnerability measurement.", "Provides a comprehensive diagnostic tool for policymakers to assess household financial vulnerability.", "Useful for financial sector risk monitoring and stress-testing at the household level.", "Applicable to policymakers in both advanced and developing economies seeking to evaluate household-level exposures and resilience.", "**wp17228 — Operationalizing the Concept of Household Financial Vulnerability**" ], "related": [ { "title": "wp17228 — Operationalizing the Concept of Household Financial Vulnerability", "role": "document", "sourceUrl": "https://www.imf.org/-/media/files/publications/wp/2017/wp17228.pdf", "summary": { "path": "/-/media/files/publications/wp/2017/wp17228.pdf.md", "mime": "text/markdown" }, "binary": { "path": "/-/media/files/publications/wp/2017/wp17228.pdf", "mime": "application/pdf" } } ], "alternates": { "markdown": "/en/publications/wp/issues/2017/11/07/a-generalized-framework-for-the-assessment-of-household-financial-vulnerability-45297/index.md", "json": "/en/publications/wp/issues/2017/11/07/a-generalized-framework-for-the-assessment-of-household-financial-vulnerability-45297/index.json", "bundleManifest": "/en/publications/wp/issues/2017/11/07/a-generalized-framework-for-the-assessment-of-household-financial-vulnerability-45297/bundle-manifest.json" }, "generatedAtUtc": "2026-09-18T12:21:00.196Z" }