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Household Debt - Coggle Diagram
Household Debt
Social
Comparative advantage and opportunity cost in the production of z-goods
Paid and unpaid labour - who can take on debt?
How household welfare is measured: equivalence scales
Measures the poverty line - requirement for debt
Models of household decision making
How debt decisions are made
Self-perception and Sen's cooperative conflict model
Power imbalance and debt
Money management systems and household inequalities
Who has financial control?
Economic
The neoclassical labour supply model
Determines individual's earning capacity and debt repayment capability
Prices and income: the consumer's feasible set and budget constraint
Defines the limit of consumption
Modelling individual savings: the intertemporal consumption model
A key framework for debt
The budget constraint (t0 and t1)
Determines feasible borrowing
Borrowers and lenders when the interest rate changes
Low interest rates increase borrowing
Political
Borrowers and lenders when the interest rate changes
Manipulation of interest rates that makes debt more appealing
Prices and income: the consumer's feasible set and budget constraint
Policy / taxation effects income, can increase or decrease the need for debt
Changing social norms
Financial sector lending 'norms'