Exploring Determinants Of U.S. Household Debt

The fast growing household debt in the U.S. has become a concern to the general public and policy makers. This paper attempts to explore the factors influencing the U.S. household indebtedness using quarterly data over the period of 1980-2010 and controlling for the time series issues. The estimated results show that the unemployment rate, interest rate, disposable personal income per capita, share of retiring population, and educational attainment are negatively associated with the household debt, while housing prices, consumer confidence, and the share of working-age population are positively related to the household borrowing.