This study constructs a financial stress index with a specific focus on the case of the Czech Republic. The advantage of the index is primarily its ability to measure the current level of stress in the financial system incorporating information from various sectors of the economy and expressing it in a single-value statistic. Our index successfully recorded and evaluated critical periods of elevated financial stress especially during the recent financial crisis. Furthermore, we examine a systematic interaction between financial stress and the macroeconomics using vector autoregression analysis along with method of impulse responses. Based on our results we observe a significant and positive response of unemployment due to the shock in financial stress. Conversely, a negative effect was examined on inflation and interest rates. JEL Classification G17, G32 Keywords financial stress index, vector autoregression, impulse responses

Charles University in Prague Faculty of Social Sciences Institute of Economic Studies MASTER THESIS Financial Stress Transmission from Developed to Emerging Countries Author: Bc. Nicolae Gavrilenco Supervisor: doc. Roman Horvàth, Ph.D. Academic Year: 2012/2013 Abstract In this research we have analyzed the financial system as it is today, describing the implications financial innovation had and the impact of the recent financial crisis. We tried to understand the nature of the financial stress and its measures. In the context of world financial integration it was also necessary to have a review upon the financial stress transmission channels from developed to emerging countries, determining the linkages and their measures. We employed a structural VAR model to determine whether there is empirical proof of financial Stress transmission from developed to emerging countries and see if financial integration represents the decisive factor in financial stress transmission. Our results suggest that there is a significant impact of financial stress in developed countries on the output of emerging ones. However we can observe an increasing influence of country-specific factors in explaining the variation in the rest of the variable of our model. The results also indicate the level of international financial...

The most commonly cited reason for dropping-out of a college program is financial issues (Johnson, Rochkind, Ott, & DuPont, 2009). While some financial issues may be related to access to financial resources, others may be related to how college students respond to financial stress. Boss’ (2002) model of family stress (Figure 1) noted the ability to cope with a crisis is influenced by available resources and perception of an event. This framework suggests the amount of financial distress perceived by young adults is influenced by available resources (e.g., parental support or financial knowledge), and internal (psychological) factors, such as self-esteem and locus of control (Boss, 2002). It is hypothesized that perceived financial well-being (perceived outlook of their financial situation), the level of control students have (e.g., locus of control) and how they perceive themselves (e.g., self-esteem) will influence perceived financial distress (ability to manage finances and education), above and beyond, and financial knowledge. To conduct the analysis, a convenience sample of 612 undergraduate college students from a Southeastern University were surveyed to determine whether their financial knowledge (i.e. credit and debit, savings, taxes, and insurance knowledge), perceived financial well-being, self-esteem and locus of control had an effect on financial distress. The results of a multiple linear regression revealed respondents’ well-being (β = .61, p < .01) and locus of control (β = .18, p < .01) are significant indicators of financial distress among college students. Specifically, for every one point increase in financial well-being, financial stress decreases by .69 points (b = -0.69, p < .01) and for every one point increase in locus of control (suggesting an increase in external locus of control), financial stress increases by .21 points (b = 0.21, p < .01). Furthermore, financial knowledge and self-esteem was not significantly related to financial stress among college students (β = -0.04, p = .11, and β = -0.10, p = .02 respectively). As such, college student’s financial distress is lower when students possess a positive outlook on their financial well-being, have an internal locus of control, and have high self-esteem. Financial knowledge had less influence on financial distress, but this finding may be a product of the level of financial knowledge among college students.

This study examines farm financial performance of Kentucky farms using Kentucky Farm Business Management data from 1998-2010. Logit models are used to estimate the likelihood of farm characteristics affecting whether financial ratios fall into critical zones or not. The results show that large farms in terms of total gross returns and total assets are less likely to experience repayment capacity problems. Total gross returns significantly affect all five financial measures. These findings will help farmers and lenders understand what factors influence farm financial performance. Profitability migration is tested to see if the migration probabilities differ across business cycles. Migration drift is also tested to determine if the Markov property of independence is violated. Results show substantial retention in return on equity (ROE) performance over time, and a tendency for trend-reversal if ROE changes occur. Results are compared to previous literature using ARMS data and Illinois FBFM.

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Economic pressure and concomitant financial stress have been associated with mental and physical health problems, conflict, and poorer education and employment outcomes. Moreover, financial stress can be seen in specific hardships (e.g., food insecurity) and lead to maladaptive attempts to regulate emotions stemming from financial stressors. Women may be more vulnerable to consequences of food insecurity and attempts to regulate emotions with eating than men. Thus, the current study examined the impact of a randomized financial stress induction on affect and snack food choice while accounting for the influence of food insecurity and gender. Participants included 269 validly responding individuals. Participants completed a measure of implicit affect prior to as well as following random assignment to one of three possible financial stress inductions with varying levels of stress. Participants then predicted the food items they would eat and their overall desired for a specific food from an array of unhealthy snack foods items. Food insecurity was associated with higher stress response to the stress induction, which was experimentally shown to increase negative affect. Positive affect after the stress induction associated with increased desire for snacks among females but not their male counterparts. Additionally, female participants with difficulties with emotion regulation reported higher desire for snacks as compared to their male peers. Future research should include examination of emotion regulation, food insecurity, and gender differences.

There is evidence that a person’s financial situation is associated with their wellbeing now and in the future. However, financial stress is present in many adults’ lives, impacting their role and participation in different occupational domains such as work, health management, and instrumental activities of daily living. Financial stress is consistently one of the top three causes of stress in the United States (APA, 2015). Financial stress is associated with cumulative effects that have a negative impact on a person’s physical health (Gallo et al., 2011; Kahn & Pearlin, 2006; Sturgeon et al., 2016) and mental health (Fitch et al., 2011; Mucci et al., 2016). Improving a person’s financial wellbeing is one way to mitigate financial stress. This project focused on the factors affecting a person’s financial decision-making skills and behavior, leading to financial stress or financial wellbeing. The evidence literature and current approaches were reviewed and contributed to the development of Financially Wiser, a theory-driven evidence-based approach for developing financial literacy and positive financial management behavior that leads to improved financial wellbeing. Financially Wiser is designed as a community-based financial management education program facilitated by an occupational therapist. A pre-test post-test evaluation will be conducted to determine participant satisfaction and the degree to which the program goals were achieved.

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Research suggests that depressive symptoms and financial stress are both associated with increased levels of cigarette smoking, yet not every individual who experiences depressive symptoms or financial stress smokes. The primary purpose of this study was to examine whether positive and negative religious coping moderated the influence of depressive symptoms and financial stress on current (past 30-day) cigarette smoking over and above the contributions of demographic covariates and nonreligious problem- and emotion-focused coping. Participants were drawn from a larger study comprised of a convenience sample of 1,120 post-secondary vocational/technical school students enrolled in programs such as welding, air-conditioning, and vocational nursing at two different two-year public colleges in Texas. These students are training to work in blue-collar occupations, which have higher smoking rates compared to white-collar occupations. Negative binomial regression analysis was used to test the study hypotheses. Depressive symptoms and financial stress increased the likelihood of smoking for female students, whereas financial stress decreased the likelihood of smoking for male students. Positive religious coping decreased the likelihood of smoking for females only. Consistent with religious coping theory and as expected, negative religious coping moderated the depressive symptoms-smoking relationship such that negative religious coping exacerbated the impact of depressive symptoms on cigarette smoking among females. Positive religious coping also moderated the depressive symptoms-cigarette smoking relationship for females. Contrary to expectations, positive religious coping exacerbated the likelihood of cigarette smoking among females with high levels of depressive symptoms. Negative religious coping moderated the financial stress-cigarette smoking relationship such that males who reported low financial stress and high levels of negative religious coping had the highest likelihood of smoking in the past month. For females, religious coping was associated with current cigarette use, but did not moderate the association between financial stress and smoking. Even after controlling for demographic covariates and nonreligious coping, positive and negative religious coping influenced the smoking behaviors of vocational students experiencing depressive symptoms and financial stress, and these outcomes varied by gender. Study limitations, implications, and suggestions for future directions in research are discussed. / text

In this study, we have examined if and how parents who receive financial support from the social services experience that their children are being affected by financial stress, as well as whether the parents experience that they are given satisfactory support from the social services. Empowerment and Sense of coherence were used as a theoretical framework to analyze the results. Interviews with three informants who all were receiving financial support at the time, and have at least one child below the age of 18 in their custody were performed. The parents were devising strategies attempting to give the children the experienced of a better financial situation, in order to protect them from being adversely affected. The conclusion is that all informants experienced a lack of support from the social services. Further results show that the parents experienced that their children were adversely affected by financial stress, especially when comparing themselves with other children. Further the results show that the parents develop their own strategies in order to protect the children from being affected by financial stress. These strategies are for example to draw the children’s attention away from the family’s economic issues and to ignore their own basic needs to be able to give the children more varied opportunities. / I denna studie har vi undersökt hur föräldrar som uppbär försörjningsstöd upplever att barnen påverkas av den ekonomiska utsattheten. Vidare undersöktes på vilket sätt föräldrarna upplever att de får stöd från socialtjänsten till att förändra den ekonomiska situationen. Empowerment och KASAM har använts som teoretisk referensram för att analysera resultatet. Studien har genomförts genom kvalitativa intervjuer med 3 informanter som alla uppbär försörjningsstöd och har barn under 18 år i hemmet. Resultatet visar att föräldrarna upplever att barnen påverkas negativt av den ekonomiska situationen, främst i relation till andra barn då barn jämför sig mycket med varandra. Resultatet visar även att föräldrarna skapar egna strategier för att skydda barnen från att påverkas negativt, dessa är bland annat att avleda uppmärksamhet från den ekonomiska situationen samt att föräldrarna bortser från egna basala behov för att istället erbjuda barnen fler möjligheter.