Determinants of debt in Mexican households: a neural network analysis

In recent years, consumer credit in Mexico has grown in significant ways. Credit cards, which represent 52% of credit in the country, grew by 19% from 2011 to 2018, while the average debt per card increased by 62%. This increase generates problems of over‑indebtedness in Mexican households....

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Bibliographic Details
Authors: Díaz Rodríguez, Héctor Eduardo, Sosa Castro, Miriam, Cabello Rosales, Alejandra
Format: article
Status:Published version
Publication Date:2021
Country:México
Institution:UNIVERSIDAD NACIONAL AUTÓNOMA DE MÉXICO
Repository:Problemas del Desarrollo. Revista Latinoamericana de Economía
Language:Spanish
English
OAI Identifier:oai:ojs.pkp.sfu.ca:article/67463
Online Access:https://www.probdes.iiec.unam.mx/index.php/pde/article/view/67463
Access Level:Open access
Keyword:endeudamiento financiero
crédito al consumo
poder adquisitivo
banca comercial
redes neuronales artificiales
financial debt
consumer credit
acquiring power
commercial banking
artificial neural networks
Description
Summary:In recent years, consumer credit in Mexico has grown in significant ways. Credit cards, which represent 52% of credit in the country, grew by 19% from 2011 to 2018, while the average debt per card increased by 62%. This increase generates problems of over‑indebtedness in Mexican households. Using microdata from the National Income and Expenditure Survey (NIES), this research seeks to identify the factors that affect over‑indebtedness in households, and to offer an explanation of said phenomenon using a neural network methodology. The principal determinant of over‑indebtedness in Mexican households is the existence of bank credit, given that this indicates a long‑term transfer of family income to the financial sector.