Correlation between credit card debt and macroeconomic factors

• Main Authors: Jia-you Shih, 史佳幼
• Other Authors: Chih-Shong Chang
• Format: Others
• Language: zh-TW
• Published: 2009
• Online Access: http://ndltd.ncl.edu.tw/handle/37731164615921892510

碩士 === 義守大學 === 財務金融學系碩士班 === 97 === This research uses unit root test and vector auto-regression to discuss the relationship between credit card cash advance, revolving credit and macroeconomic factors in different periods. We divide our sample period into three periods. The divided points are outbreak of Twin-Card crisis and Subprime Mortgage Storm Crisis. For the credit card cash advances, the empirical results show negative relationship between the credit card total expenditures of cardholders and credit card cash advance in three periods. In the second and third periods, there exists positive or negative relationship between interest rate-rediscounts in different lag periods and credit card cash advances. In addition, M1B and Liquid Liabilities Amount individually show negative and positive relationship with credit card cash advances. In the third period, Misery Index and Consumer Price Index-General Index show positive relationship. It means when consumers’ purchasing power decrease, they may increase the credit card cash advances to consume. To sum up, the amount of cash with cardholders’ will affect the amount of credit card cash advances. The empirical results show that different macroeconomic factors affect credit card revolving credit in three periods. Only Unemployment Rate shows most positive relationship with credit card revolving credit in three periods. It may mean that cardholders can’t clear off credit card total expenditures to lead to increase credit card revolving credit. In the first and third period, Labor Participation Rate in different lag periods shows positive or negative relationship with credit card revolving credit. In the first and second period, Misery Index shows positive relationship with credit card revolving credit. To sum up, when consumers are unemployed or Misery Index increases, will affect the amount of credit card revolving credit.