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Household Debt and Household Spending Behavior: Evidence from Malaysia (Hutang Isi Rumah dan Tingkah Laku Perbelanjaan Isi Rumah: Bukti dari Malaysia)

Cai, Yunchao and Abdullah Yusof, Selamah and Mohd Amin, Ruzita and Mohd Arshad, Mohd Nahar (2020) Household Debt and Household Spending Behavior: Evidence from Malaysia (Hutang Isi Rumah dan Tingkah Laku Perbelanjaan Isi Rumah: Bukti dari Malaysia). Jurnal Ekonomi Malaysia, 54 (1). pp. 1-12. ISSN 0126-1962 E-ISSN 2716-6058

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Abstract

Using data collected from urban households in the Klang Valley, Malaysia, this study examined the impact of household debt on urban household consumption decisions. The findings revealed that household debt does not generally affect consumption decisions, except in the case of expenditure on vacation, which tends to be reduced for households facing high levels of debt. Furthermore, general financial wellness tends to be the main factor affecting consumption rather than debt. Households with poorer financial wellness make more frequent cuts to daily meals, fruit, utility, transportation, clothing, medical care, vacations, and leisure activities. Although the impact of debt on consumption is not extensive, it must be closely monitored to ensure that the risk is contained and that the wellbeing of households is not adversely affected.

Item Type: Article (Journal)
Additional Information: 301/81523
Uncontrolled Keywords: Household debt; spending cut; investment loan; consumption loan; Malaysia
Subjects: H Social Sciences > HB Economic Theory > HB801 Consumption. Demand
H Social Sciences > HG Finance > HG179 Personal finance
Kulliyyahs/Centres/Divisions/Institutes (Can select more than one option. Press CONTROL button): Kulliyyah of Economics and Management Sciences > Department of Economics
Depositing User: Dr SELAMAH ABDULLAH YUSOF
Date Deposited: 20 Jul 2020 09:11
Last Modified: 20 Jul 2020 09:11
URI: http://irep.iium.edu.my/id/eprint/81523

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