Refereed Articles
The Joneses‘ Income and Debt Market Participation. Empirical Evidence from Bank Account Data
Michael Berlemann, Jan Salland (2016),
Economics Letters 142, 6-9.
Economics Letters 142, 6-9.
In this paper we study whether the decision to raise debt is related to average income in the own residential area. Based on a unique dataset of bank account data we find that bank customers are more likely to hold collateralized and uncollateralized loans and to make use of the overdraft facility when the comparison income is higher, even after controlling for socio-demographic and financial characteristics. This indicates that conspicuous consumption is partly financed by debt.