Household borrowing is a key element for consumption-smoothing over the life cycle. However, over-indebtedness may induce negative health impacts through uncertainty, worries, and shame for example. This paper examines how over-indebtedness affects the mental well-being in Sweden between 2010-2018. The data is collected from several Swedish authorities at the municipal and county level. In the attempt to estimate the causal relationship between debt and health, a Bartik-like instrumental variable approach is used as an empirical strategy. The main finding from the results is that an increase in the degree of over-indebtedness improves mental health conditions but worsen excessive alcohol consumption. Nonetheless, most of the estimates are imprecise and should not be interpreted as causal.
| Identifer | oai:union.ndltd.org:UPSALLA1/oai:DiVA.org:uu-415368 |
| Date | January 2020 |
| Creators | Rönngren, Maria |
| Publisher | Uppsala universitet, Nationalekonomiska institutionen |
| Source Sets | DiVA Archive at Upsalla University |
| Language | English |
| Detected Language | English |
| Type | Student thesis, info:eu-repo/semantics/bachelorThesis, text |
| Format | application/pdf |
| Rights | info:eu-repo/semantics/openAccess |
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