INTO THE UNKNOWN: A REVISED ESTIMATE OF THE DEBT SERVICE RATIO FOR THE CZECH REPUBLIC

Result code in IS VaVaI
<a href="https://www.isvavai.cz/riv?ss=detail&h=RIV%2F25840886%3A_____%2F21%3AN0000028" target="_blank" >RIV/25840886:_____/21:N0000028 - isvavai.cz</a>
Result on the web
—
DOI - Digital Object Identifier
—

Result language
angličtina
Original language name
INTO THE UNKNOWN: A REVISED ESTIMATE OF THE DEBT SERVICE RATIO FOR THE CZECH REPUBLIC
Original language description
Czech household debt is currently not as high as in the most developed countries in the world, but its dynamics have been noticeable in recent years. This paper aims to calculate the Debt Service to Income (DSTI) ratio of Czech households and assess how it will evolve in the future. Using the modified BIS methodology and EU-SILC data, we compute our measure of DSTI. We found that the traditional measurement methodology overestimates household income and underestimates interest paid. Thus, the DSTI indicator is higher. We also find that even a relatively small change in interest rates can significantly increase the DSTI. This is particularly important for Czech households taking out mortgages with low interest rates and short fixation periods. Once the fixation period ends, they may find it challenging to repay the mortgage or reduce their consumption, which may have adverse economic consequences.
Czech name
—
Czech description
—

Publication year
2021
Confidentiality
S - Úplné a pravdivé údaje o projektu nepodléhají ochraně podle zvláštních právních předpisů

Article name in the collection
Proceedings of the International Scientific Conference ECONOMIC AND SOCIAL POLICY
ISBN
978-80-87291-29-0
ISSN
—
e-ISSN
—
Number of pages
9
Pages from-to
1-9
Publisher name
Vysoká škola PRIGO
Place of publication
Havířov
Event location
Čeladná, Česká republika
Event date
Sep 7, 2021
Type of event by nationality
EUR - Evropská akce
UT code for WoS article
—

Similar results(10)