Marianna Brunetti|Elena Giarda|Costanza Torricelli
Is Financial Fragility a Matter of Illiquidity? An Appraisal for Italian Households
University of Rome Tor Vergata|Compagnie Européenne d’intelligence Stratégique (France)|Prometeia (Italy)|French Foundation for Biodiversity Research|University of Modena and Reggio Emilia
investigate household financial fragility italy providing three main contributions first propose novel characterization financial fragility necessarily linked indebtedness distinguishes expected unexpected expenses takes portfolio composition account free subjectivity bias second use assess importance household portfolio composition determining difficulties related coping unexpected expenditures besides socioeconomic demographic factors third test ability forecast future conditions financial distress empirical analysis based b ank taly urvey h ousehold ncome w ealth results highlight relevance portfolio choices determinants financial distress provide evidence homeownership increases likelihood financial fragility presence mortgage decreases moreover measure shown act early warning indicator distress