Household Credit, Indebtedness and Insolvency
| Reference number | |
| Coordinator | KUNGLIGA TEKNISKA HÖGSKOLAN - KTH Centrum för bank och finans |
| Funding from Vinnova | SEK 2 000 000 |
| Project duration | December 2011 - December 2016 |
| Status | Completed |
Important results from the project
The aim was to analyze the relationship between credit, debt and insolvency. (1) credit, (2) debt, (3) insolvent and (4) public auctions. The project has resulted in five reports have been produced to illustrate the relationship between credit, debt and insolvency. "Household credit, indebtedness and Insolvency" "When it is likely that a considerably higher price can be achieved" "Forced sales and Their Impact on real estate prices" "Foreclosures, Returns, and Buyer Intentions" "Determinants of a Foreclosure Discount"
Expected long term effects
One conclusion is that households that have fallen into insolvency and who see their property sold at public auction sold for up to 20% lower price than if it had been sold on the open market.
Approach and implementation
234/5000 Three of the articles are in the field of economics. By analyzing a unique database developed for this project, a number of econometric analyzes have been implemented. Two of the articles has a more legal scientific approach.