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Title: Noncognitive Abilities and Financial Delinquency: The Role of Self‐Efficacy in Avoiding Financial Distress
Resulting in 1 citation.
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Kuhnen, Camelia M. Melzer, Brian |
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Noncognitive Abilities and Financial Delinquency: The Role of Self‐Efficacy in Avoiding Financial Distress Journal of Finance 73,6 (December 2018): 2837-2869. Also: https://onlinelibrary.wiley.com/doi/10.1111/jofi.12724 Cohort(s): NLSY79, NLSY79 Young Adult Publisher: Wiley Online Keyword(s): Credit/Credit Constraint; Debt/Borrowing; Financial Behaviors/Decisions; Noncognitive Skills; Pearlin Mastery Scale Permission to reprint the abstract has not been received from the publisher. We investigate a novel determinant of financial distress, namely, individuals' self‐efficacy, or belief that their actions can influence the future. Individuals with high self‐efficacy are more likely to take precautions that mitigate adverse financial shocks. They are subsequently less likely to default on their debt and bill payments, especially after experiencing negative shocks such as job loss or illness. Thus, noncognitive abilities are an important determinant of financial fragility and subjective expectations are an important factor in household financial decisions. This article is protected by copyright. All rights reserved |
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Bibliography Citation
Kuhnen, Camelia M. and Brian Melzer. "Noncognitive Abilities and Financial Delinquency: The Role of Self‐Efficacy in Avoiding Financial Distress." Journal of Finance 73,6 (December 2018): 2837-2869.
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